Moody's affirms Saint Mary's Hospital's 'Ba2' rating

Moody's Investors Service has affirmed Waterbury, Conn.-based Saint Mary's Hospital's "Ba2" bond rating, which affects approximately $21 million of series E bonds issued by the Connecticut Health & Education Facility Authority.

The rating affirmation reflects Saint Mary's Health System's maintenance of improved operating results in recent years and continued strong debt coverage ratios.

SMHS had a 7.9 percent operating cash flow margin through the first nine-months of fiscal year 2014. In addition, the health system's coverage ratios are strong for its rating, with debt-to-cash flow under 1.0 times and cash-to-direct debt over 200 percent.

SMHS is facing some challenges as well, such as weak demographics, with Medicaid representing 24 percent of the health system's gross revenues in fiscal year 2013.

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