Moody's Investors Service assigned its "A1" rating to New York City-based Hospital for Special Surgery's proposed $180 million series 2018 bonds.
The assignment is based on several factors, including the hospital's growing patient volume, favorable payer mix, strong revenue growth and solid cash flow generation. Moody's also acknowledged the hospital's high near-term debt service obligations, upcoming period of high capital spending, competitive service area and transition risks associated with shifting some outpatient services from its hospital to its joint ventures.
The outlook is stable, reflecting Moody's expectation that the hospital's margins will return to historical averages after the initial negative impact of transitioning outpatient services to its joint ventures.