Moody's Investors Service has affirmed Towson, Md.-based Greater Baltimore Medical Center's "A2" and "A2/VMIG 1" bond ratings on $105 million of outstanding debt issued through the Maryland Health and Higher Educational Facilities Authority.
The affirmation of the "A2" rating was supported by a number of factors, including GBMC's multi-year trend of more solid operating margins, favorable rate structure under Maryland's global budget revenue contract and steady strengthening in absolute liquidity, according to Moody's.
GBMC faces some challenges, which were considered for the rating affirmation, such as operating in a competitive service area, downward pressure on demand, which may limit profitability, as well as margins which, while consistently profitable, are below "A2" medians.
Moody's said the short-term "VMIG 1" rating on the series 1995 bonds is based on the presence of a standby bond purchase agreement from M&T Bank.
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