Moody's Investors Service has assigned an "Aa3" rating on the University of Pittsburgh Medical Center's proposed $130 million of series 2015B revenue bonds issued through the Pennsylvania Economic Development Financing Authority.
The rating assignment is based on a number of factors, including UPMC's large size and market reach coupled with community hospitals and ownership of a sizable health plan.
The rating outlook has been revised to negative, reflecting Moody's belief that UPMC is in a transition period, owing largely to an environment that carries uncertainty regarding resolution of disputed receivables and fiscal year 2016 cash flow.