Moody's Investors Service has upgraded the rating on Worcester-based UMass Memorial Health Care's revenue bonds to "Baa3" from "Ba1," affecting approximately $265 million of outstanding rated debt.
The rating upgrade is based on a number of factors, including UMMHC's large size, clinical diversification and close relationship with Worcester-based University of Massachusetts Medical School.
Offsetting these strengths are several challenges, including modest operating margins and higher-than-average Medicaid exposure.
The outlook is stable, reflecting Moody's expectation of UMMHC's continued positive operations and maintenance of good liquidity.