Moody's Investors Service has affirmed the "A2" rating on Kingwood, Texas-based Northeast Hospital Authority's series 1997 bonds.
The affirmation of the "A2" rating was supported by a number of factors, including steady facility lease payments from "A1"-rated Memorial Hermann Health System in Houston and the term of the agreement through the maturity of the bonds, according to Moody's. The rating affirmation was also supported by improved cash-to-debt of over 200 percent with increasing cash and declining debt and stable cash flow.
Moody's gave NHA a stable outlook, saying it expects MHHS will continue to pay under the lease agreement with NHA and that cash flow "will more than adequately cover debt service."
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