Moody's Investors Service has assigned an "Aa2" rating to Columbus, Ohio-based Nationwide Children's Hospital's proposed $75 million of series 2015A fixed rate bonds and an "Aa2/VMIG 1" rating to the hospital's proposed $25 million of series 2015B variable rate bonds.
Moody's also affirmed the "Aa2" and "Aa2/VMIG 1" ratings on the hospital's outstanding debt.
The rating action was supported by the hospital's dominant and growing market position, close affiliation with the majority of pediatricians and subspecialists in the area, very strong and consistently growing operating margins, exceptional revenue growth, moderate leverage and good fundraising, according to Moody's.
The hospital also faces challenges, such as having a high dependency on Medicaid funding.
NCH's rating outlook is stable.
More stories on healthcare finance:
3 healthcare associations among 10 top-spending lobbyists for Q1 2015
Half of Americans have financial anxiety, Gallup survey finds