The 2010 series A bonds will be used to refund series 1999A bonds and a portion of series 2002A, as well as to fund capital projects, according to the report.
While Fitch determined HHC’s operations to be volatile, the system is backed by New York City, improving its stability. The ratings agency also pointed to the HHC’s lockbox structure, which forces pledged funds to be sequestered first for debt service needs before going toward HHC’s operations, according to the report.
HHC lost $650 million in operations for fiscal year 2010; however, the system improved its cash on hand to 38 days, compared to 27 days during fiscal year 2009.
Read the Kansas City Star report on New York City’s Health and Hospital Corp.
Read more coverage on New York City’s Health and Hospital Corp.:
– Employed Physicians at New York City Hospital Unionize
– New York City’s Health & Hospitals Corp. to Cut 500 Jobs, End Physician Contracts
