Moody's ups Universal Health secured rating

Moody's Investors Service said it upgraded the ratings of Universal Health Services, Inc.'s senior secured credit facility and senior secured notes to Baa3 from Ba1. Moody's also withdrew the Ba1 corporate family rating, Ba1-PD probability of default rating and SGL-1 speculative grade liquidity rating.

“The upgrade of UHS' secured debt to investment grade reflects Moody's view that the company's financial leverage will remain low both in absolute terms and relative to its for-profit hospital sector peers. It also reflects the rating agency's opinion that the company will continue to operate with very good liquidity, strong free cash flow and good business segment diversification over a longer-term horizon,” the agency said in a press release.

The agency said it forecasts UHS’ adjusted debt/EBITDA, about 2.1 times as of March 31, 2021, to remain in the low-to-mid 2 times range.

The outlook is stable.

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