Moody’s upgrades UMass Memorial Health Care’s rating to ‘Baa3’

Moody’s Investors Service has upgraded the rating on Worcester-based UMass Memorial Health Care’s revenue bonds to “Baa3” from “Ba1,” affecting approximately $265 million of outstanding rated debt.

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The rating upgrade is based on a number of factors, including UMMHC’s large size, clinical diversification and close relationship with Worcester-based University of Massachusetts Medical School.

Offsetting these strengths are several challenges, including modest operating margins and higher-than-average Medicaid exposure.

The outlook is stable, reflecting Moody’s expectation of UMMHC’s continued positive operations and maintenance of good liquidity.

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