Rating Action: Moody’s assigns Aa3 to Novant Health’s (NC) Ser. 2021A; outlook negativeGlobal Credit Research – 29 Mar 2021New York, March 29, 2021 — Moody’s Investors Service has assigned a Aa3 to Novant Health’s (NC) proposed Taxable Bonds (Novant Health Obligated Group) Series 2021A. Par amount of the offering is $1.5 billion and bonds are expected to have a final maturity of 2061. At this time we are affirming our Aa3 and Aa3/VMIG 1 rating on approximately $1 billion of rated debt outstanding. The outlook is negative.RATINGS RATIONALENovant Health’s Aa3 will be supported by the strength of the legacy enterprise-particularly its strong and stable cash flow margins and good market positions, albeit in competitive markets, and the strength of the newly acquired, Novant Health New Hanover Regional Medical Center (NHRMC), which has a multi-year track record of strong financial performance and good growth prospects in its core and surrounding markets. Liquidity will remain good with over 200 days cash and although leverage will be high owing to an approximately 100% increase in debt; unrestricted cash to debt will remain above 100%. Further supporting the Aa3 are Novant Health’s response to the pandemic and ability to maintain margins close to budget in fiscal 2020-a significantly more favorable result than many peer organizations nationally, a stable and seasoned management team that deleveraged Novant Health’s balance sheet over a multi-year period leading up to this…