Moody's Investors Service has affirmed the "Baa3" rating on New England-based Harvard Pilgrim Health Care's bonds, affecting approximately $49 million of series 1998A fixed-rate bonds to be issued through the Massachusetts Health and Educational Facilities Authority.
The rating assignment was supported by a number of factors, including HPHC taking steps to improve operating margins and performance in new markets and its low amount of debt contributing to still healthy debt service coverage.
An inability to improve financial performance during fiscal year 2015 and 2016 could negatively pressure the rating.
The outlook is stable.