Moody’s assigns rating to Community Hospitals of Central California’s bonds: 4 things to know

Moody’s Investors Service has assigned a “Baa1” rating to Fresno-based Community Hospitals of Central California, doing business as Community Medical Centers, proposed $357.9 million of series 2015A fixed rate revenue bonds.

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Here are four things to know about the rating assignment and the system’s outlook.

1. The rating assignment is driven by CMC’s maintenance of good operating performance measures, and the anticipated receipt of significant additional Provider Fee dollars through Dec. 31, 2016, according to Moody’s.

2. The rating assignment was also supported by the system’s large revenue base, good market position and strong clinical services.

3. CMC faces some challenges, which were considered for the rating assignment, such as difficult market demographics, a competitive market for healthcare services and ongoing high leverage.

4. The system’s outlook is stable, which reflects Moody’s view “that CMC will continue to achieve stable, adequate operating performance (excluding the Provider Fee), and
will continue to digest its high debt position.”

 

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