Fitch Ratings has assigned an "A-" rating to the expected issuance of $32 million in tax-exempt revenue refunding bonds on behalf of New York Methodist Hospital in Brooklyn, N.Y.
The series 2014 bonds are expected to be issued as fixed rate, and the proceeds will be used to refund the hospital's outstanding series 2004 bonds, according to Fitch. Key rating drivers include New York Methodist's strong financial performance during the last three years, with a 4.3 percent operating margin and 7.8 percent operating EBITDA margin on average. Six-month 2014 financials show continued strength, with a 5.9 percent operating margin and an 8.5 percent operating EBITDA margin.
Additionally, the hospital's unrestricted cash and investments have increased by 265 percent during the last 3.5 years to $339.8 million as of June 30, according to Fitch. The ratings service also views the hospital's sponsorship relationship with New York-Presbyterian Healthcare System in New York City as a credit strength. Other rating drivers include the hospital's community physician alignment strategy and the planned construction of a sizable ambulatory care building within the next two years.