Moody's Investors Service has affirmed the "A1" unenhanced ratings assigned to $337.4 million of University of Alabama Hospital at Birmingham's outstanding hospital revenue bonds.
The rating affirmation was supported by a number of factors, including the hospital's position as a large academic medical center providing various high-end acute and non-acute services with a national and international draw.
The rating affirmation was also supported by recent changes in the hospital's organizational structure "designed to streamline decision making and create a more nimble organization," as well as strong volume and revenue growth and improved performance in the first quarter of fiscal year 2015 after two years of consistent but modest operating performance, according to Moody's.
Additionally, Moody's maintained the hospital's stable outlook based on its expectation that with the hospital's strong market presence and management's efforts to restructure the organization to be more efficient, its operating cash flow generation will continue to grow improving debt coverage and balance sheet measures.
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