Moody's Investors Service has assigned an "Aa3" rating to up to $550 million of New York City-based Memorial Sloan-Kettering Cancer Center's taxable, fixed rate series 2015 revenue bonds.
The rating assignment was supported by a number of factors, including MSKCC's excellent market position and improved operating performance. The center ended the first nine months of fiscal 2014 with a 2.5 percent operating margin and a 12.3 operating cash flow margin.
MSKCC also faces some challenges, which were considered for the rating assignment, such as being involved in a period of capital investment.
The center's outlook is stable, and according to Moody's the outlook reflects the expectation "that the capital projects will open on-time and on-budget and that debt service coverage will improve as new revenue-generating facilities open."
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