Moody's Investors Service affirmed its "Aa3" rating on Yale New Haven (Conn.) Health, affecting $1.1 billion of outstanding debt.
The affirmation is a result of the health system's strong market position, favorable operating margins, moderate capital spending, solid liquidity, manageable leverage and affiliation with New Haven-based Yale University. Moody's also acknowledged the health system's sizable pension, large operating lease obligations and reimbursement pressures coming from Medicaid an state hospital tax funding.
The outlook is stable, reflecting Moody's expectation that Yale New Haven Health will maintain its healthy operating performance to offset any reimbursement pressures.