Moody's Investors Service has assigned an "Aa2/NR" rating to Rochester, Minn.-based Mayo Clinic's proposed $125 million of series 2016 bonds issued by the City of Jacksonville (Fla.) and $75 million of series 2016 bonds issued by the City of Rochester (Minn.).
The "Aa2" rating is based on numerous factors, including Mayo's large size, demonstrated national and international draw for patients and strong fundraising ability.
Offsetting these strengths is Mayo Clinic's support of research and education activities that suppress adjusted margins.
The outlook is stable, reflecting Moody's Investors Service's expectation that Mayo will continue to generate adequate adjusted operating margins and sustain liquidity ratios.