Moody’s assigns ‘Aa2’ rating to Children’s Hospital of Philadelphia’s bonds

Moody’s Investors Service assigned an “Aa2” rating to Children’s Hospital of Philadelphia’s proposed $177.48 million of Series 2017 bonds.

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The rating assignment is based on a variety of factors, including CHOP’s position as a leading U.S. children’s hospital. Other factors included CHOP’s research program, strong financial performance and fundraising capabilities.

Moody’s also considered CHOP’s challenges, such as an increase in capital spending over the next couple years, high occupancy and high exposure to Medicaid.

The outlook is stable, reflecting Moody’s expectations that “financial performance will continue to be strong, providing ample coverage of debt service. Fundraising efforts will also meet targets given past successes with prior campaigns.”

 

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