The ratings downgrade is based on a number of factors, including the bank’s credit worthiness, the direct-pay letter of credit provided to the health system by the bank and the structure and legal protections of the transaction.
Moody’s Investors Service also affirmed the “VMIG1” short-term rating on the health system’s series 1998A multimodal revenue bonds.
Editor’s note: This article initially reported MedStar Health in Columbia, Md., received a credit downgrade from “Aa2” to “Aa1” from Moody’s. This downgrade pertained to a specific bond, not the health system. Becker’s regrets the error.
More articles on healthcare finance:
Fitch affirms ‘BBB+’ rating on Silver Cross Health System’s bonds
Fitch affirms ‘BB+’ rating on Marshall Medical Center’s bonds
Moody’s affirms ‘A1’ rating on Children’s National Medical Center’s bonds
