Moody’s affirms Ochsner Clinic Foundations’ ‘Baa1’ rating

Moody’s Investors Service has affirmed the “Baa1” rating assigned to New Orleans-based Ochsner Clinic Foundation’s $514 million of series 2007A and 2011 fixed rate revenue bonds, and the “Baa1” rating assigned to Ochsner Community Hospital’s $75 million of series 2007B bonds.

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Both OCF and OCH are solely owned by Ochsner Health System. The rating affirmation of OCF and OCH reflect the health system’s growing market position and strong improvement in operating cash flow.

OHS posted a 7.5 percent operating cash flow margin in 2013, up from 3.4 percent in 2012. In addition, the health system recorded 35 percent growth in unrestricted liquidity in 2013 to improve cash on hand by 20 days over the prior year.

The stable outlook reflects the expectation that OHS will continue to improve operating performance and enhance liquidity in 2014.

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