Moody's affirms Mount Sinai Medical Center's bond rating: 4 things to know

Moody's Investors Service has affirmed the "Baa1" long-term ratings assigned to Miami Beach, Fla.-based Mount SinaiMedicalCenter's bonds issued through the City of Miami Beach Health Facilities Authority.

Here are four things to know about the rating action and MSMC's outlook.

1. The rating action affects roughly $290 million of debt.

2. The affirmation was supported by a number of factors, including MSMC's ability to generate healthy operating margins, strengthen balance sheet measures and increase volume capture, through its expanded ambulatory footprint and growth in higher-end clinical areas such as cardiac services, according to Moody's.

3. MSMC also faces challenges, which were considered for the rating action, such as a competitive market, increased capital spend that carries construction risk, ongoing Medicare pressures and Medicaid funding pressures in Florida and still above average leverage measures.

4. MSMC's outlook is stable, which reflects Moody's expectations "that MSMC will sustain operating performance at levels consistent with FY 2014 and maintain current levels of unrestricted investments and issue no incremental debt."



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