Fitch affirms University of Maryland Medical System’s bond rating

Fitch Ratings has affirmed the “A” rating on approximately $1.1 billion of revenue bonds issued on behalf of University of Maryland Medical System in Baltimore.

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The rating affirmation was based on a number of factors, including UMMS’ 2014 financial results being on target. The system had an operating margin of 1.6 percent and an operating EBITDA margin of 9 percent in 2014.

The system faces some challenges, which were considered for the rating affirmation, such a having weak liquidity and an elevated debt burden.

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