Moody's Investors Service has assigned a "Baa2" rating to Boston Medical Center's proposed $75 million of series 2016 taxable bonds.
The rating assignment is based on a number of factors, including BMC's key role as a healthcare provider in the Boston metro area and provider of heath insurance through an affiliated health insurance plan.
These strengths are offset by several challenges, including a payer mix heavily weighted toward governmental payers and BMC's reliance on supplemental funding for cash flow.
The outlook is stable, reflecting Moody's Investors Service's view that BMC will continue to receive supplemental funding and generate adequate margins.
Moody's has also affirmed its "Baa2" rating on BMC's $421 million of outstanding debt.