Moody’s changes outlook to negative on UPMC’s bonds

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.

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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.

More articles on finance:
Fitch: Capital spending will rise for nonprofit hospitals
Moody’s: Entrance of nonprofit hospitals into health insurance will rise
Moody’s affirms New Hanover Regional Medical Center’s ‘A1’ rating

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