Moody's Investors Service has downgraded the ratings assigned to New York-based Mount Sinai Hospital's bonds to "A3" from "A2," which affects $367 million of outstanding debt.
The downgrade reflects a number of challenges the system is facing such as weakened standalone operating performance in fiscal year 2013 and fiscal year 2014 as well as the hospital's plans to create an expansive integrated healthcare delivery system throughout New York, according to Moody's.
The system's strengths, including its strong market position, stable and strong senior leadership team and conservative capital structure, were also considered for the rating downgrade.
Although a further downgrade is not expected in the near-term, Mount Sinai's rating may be upgraded over the longer term if the health system "is able to benefit from its significant size and scope and achieve sustained improvement in operating performance and liquidity," according to Moody's.
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