Moody's Investors Service has assigned an "A1" rating to Birmingham-based Children's Hospital of Alabama's proposed $155.1 million of series 2015 bonds and affirmed the "A1" rating on the series 2009 bonds.
The rating assignment was based on a number of factors, including Children's status as the only pediatric hospital in Alabama, a history of state support via Medicaid funding and the organization's affiliation with the "A1"-rated University of Alabama Hospital at Birmingham.
Credit challenges include limited fundraising and uncertainty concerning reimbursement changes to Medicaid.
The rating outlook is stable, reflecting Moody's expectation that Children's will maintain strong operating performance and strong balance sheet metrics given minimal capital investment needs.