Moody's Investors Service has assigned a "Baa2" rating to Philadelphia-based Albert Einstein Healthcare Network's $445 million of proposed series 2015A fixed rate tax-exempt bonds and revised the network's outlook to stable from negative.
The rating assignment was supported by a number of factors, including AEHN's position as a larger, tertiary provider.
The network also faces some challenges, which were considered for the rating assignment, such as being dependent on supplemental funding to support a high Medicaid load.
The outlook revision reflects Moody's expectation "that improved interim operating margins will be sustained, and liquidity at FYE 2015 will be restored to at least the FYE 2014 absolute level following completion of an asset sale and the proposed financing, both of which are expected in the next three months."
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