Moody's Investors Service has assigned a "Ba1" long-term rating to Middletown, N.Y.-based Orange Regional Medical Center's proposed approximate $69 million series 2015 healthcare revenue bonds.
Moody's also affirmed the "Ba1" long-term ratings assigned to ORMC's outstanding bonds, affecting approximately $307 million of outstanding rated debt.
The assignment and affirmation of the "Ba1" rating was supported by a number of factors, including ORMC's continuing favorable cash flow generation over the last few years and conservative capital structure with an all fixed rate debt and liquid investment portfolio, according to Moody's.
However, those factors were offset by the medical center's highly leveraged balance sheet position, material variability in volume trends over the past several years and thin liquidity balance.
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