Fitch gave UMass an “A-” rating, while Moody’s upgraded the hospital’s rating to “Baa1” from “Ba1.”
Due to UMass Memorial’s operating costs exceeding revenue nearly two years ago, rating agencies lowered its ratings. But the hospital made a financial turnaround and most recently reported a $72 million operating profit in fiscal year 2015.
Since Fitch and Moody’s gave it higher ratings last week, UMass could save $1 million in interest when it issues new bonds.
“These higher ratings, among other things, give us the flexibility to make more strategic decisions and to make improvements to our facilities, technology and services to advance the cause of patient-centered care,” said Eric Dickson, MD, president and CEO of UMass Memorial said in a statement.
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