Moody’s revises Texas Children’s Hospital’s outlook to negative

Moody’s Investors Service affirmed the “Aa2” and “Aa2/P-1” ratings on Houston-based Texas Children’s Hospital’s revenue bonds, affecting $966 million of rated debt.

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The “Aa2″affirmation is a result of several factors, including the hospital’s strong brand recognition, large revenue base, solid debt coverage, favorable cash levels and wide variety of services offered.

The short-term affirmation is based on Moody’s expectation that TCH has the ability to pay the approaching mandatory tender.

The outlook was revised to negative from stable, reflecting Moody’s expectation that the hospital will post weaker near-term financial results and see future targets fall below expectation. 

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