Mount Sinai Hospital debt ratings confirm 'A' grade, stable outlook

New York City-based Mount Sinai Hospital has had various debt obligations affirmed as an "A" rating amid stable operating performance and because of its dominant position within its wider health system, Fitch Ratings said Nov. 16.

Fitch issued the rating both on $479.1 million worth of bonds and on the hospital's Issuer Default Rating, also describing the rating outlook as stable.

Fitch concluded the rating affirmation based on an analysis of the two Mount Sinai Hospital locations, one on the Upper East Side of Manhattan and the other in Astoria, Queens. 

Those two locations accounted for approximately $3.4 billion in operating revenue in 2021 compared with $5.2 billion for the Mount Sinai Hospitals Group as a whole, Fitch said. MSHG also includes Mount Sinai Beth Israel, St. Luke's-Roosevelt Hospital, the New York Eye and Ear Infirmary, all in New York City, and South Nassau Communities Hospital on Long Island.

A full asset merger of the hospitals in MSHG was expected in 2021 but has been extended until 2031. 

Mount Sinai Hospital could even have a higher rating, but plays a vital support role in supporting the other hospitals within the group.

"While MSH's financial profile as indicated by its adjusted leverage metrics suggests a higher rating, the rating considers the ongoing support and integration cost of the other hospitals within the MSHG," Fitch said.

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