Moody's downgrades Northeast Ohio Medical University's rating to 'Baa2'

Moody's Investors Service has downgraded the rating on Rootstown-based Northeast Ohio Medical University's series 2010 and 2011 general receipts bonds to "Baa2," affecting approximately $40 million.

The downgrade is based on several factors, including increased expense growth and a weakened liquidity profile.

The outlook is negative, reflecting ongoing challenges in terms of NEOMED's outsized financial leverage.

Moody's also affirmed the "Baa3" rating on NEOMED's $36 million of series 2012 student housing revenue bonds. The affirmation is based a number of factors, including improved occupancy rates of the project.

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