The rating reflects further clarification on future capital and debt plans, sustained improvement in operating margins and a significant increase in investments. The hospital recently improved its operating cashflow margins to 8 to 9 percent. Moody’s expects the hospital will sustain its margins, and investments will continue to grow to support a sizeable debt issuance in 2015.
Fitch Ratings recently assigned an “A-” rating to the expected issuance of the hospital’s revenue refunding bonds. Aside from financial strength, key rating drivers included the hospital’s sponsorship relationship with New York-Presbyterian Healthcare System in New York City, community physician alignment strategy and the planned construction of a sizable ambulatory care building within the next two years.
More articles on hospital finance:
Fitch affirms ‘BBB-‘ rating for Columbia Memorial Hospital, outlook stable
Moody’s revises OSF Healthcare System’s outlook to stable
Fitch: Nonprofit healthcare sector operating profitability drops
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