Chapel Hill-based University of North Carolina Health’s credit rating was upgraded to “Aa2” from “Aa3” by Moody’s.
The upgrade reflects expectations that UNC Health will continue generating strong cash flow, allowing the system to fund capital needs without significant new debt and absorb near-term reimbursement pressure, Moody’s said in its Jan. 23 report.
UNC Health’s Aa2 rating reflects its strong overall financial performance, which is underpinned by its excellent reputation as a major academic medical center, ownership ties to the state of North Carolina and its key role in statewide healthcare, the report said.
The system’s performance has been bolstered by strong patient demand in its core market, as well as from North Carolina’s provider-directed payment program.
Moody’s said reliance on supplemental funding remains a significant risk and could adversely affect revenue as soon as fiscal year 2027, but added that the system’s underlying operating performance should continue to improve. Those improvements have been driven by leadership’s strategic investments, efficiency strategies and operational rigor.
UNC Health has a stable outlook at its new rating.
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