Moody's Investors Service has assigned a "Baa1" bond rating to Ochsner Clinic Foundation's proposed $269.5 million of series 2015 tax-exempt bonds and $252.5 million of series 2015 taxable fixed rate revenue bonds and revised its outlook to positive from stable.
OCF is solely owned by New Orleans-based Ochsner Health System.
The outlook revision was based on a number of factors, including OHS' improving operating performance over the last two fiscal years.
OHS' strengths were considered for the rating affirmation, including its leading market share as a sizable, highly integrated health system with a strong and growing reputation for tertiary and quaternary services, according to Moody's.
The system also faces some challenges, which were considered for the rating affirmation, such as its balance sheet measures remaining modest compared to the "Baa1" medians.
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