Additionally, Moody’s has assigned an “A3” rating to $127 million of series 2014A fixed rate bonds to be issued through the New Jersey Health Care Facilities Financing Authority on behalf of Barnabas Health.
The rating upgrade and assignment were supported by a number of factors, including Barnabas’ continued strong financial performance. The system recorded a 5.5 percent operating margin and a 10.7 percent operating cash flow margin through the nine months ending in September.
The rating upgrade was also supported by the elimination of the frozen Jersey City (N.J.) Medical Center pension plan and the completion of a seven-year repayment plan pursuant to a settlement with the Department of Justice, which were two major demands on Barnabas’ liquidity.
Barnabas faces some challenges, which were considered for the rating upgrade, such as the integration of Jersey City Medical Center and inpatient volume declines.
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