Standard and Poor's has assigned an "A-" long-term rating to $500 million of series 2015 healthcare revenue bonds issued on behalf of Great Neck, N.Y.-based North Shore-Long Island Jewish Health System.
The rating agency also affirmed the "A-" long-term ratings on various series of healthcare revenue bonds issued on behalf of North Shore-LIJ.
Here are three things to know about the rating assignment and the system's outlook:
1. S&P credit analyst Stephen Infranco said the rating assignment "reflects (North Shore-LIJ's) strong enterprise profile, which is anchored by its leading market position in a sizable and diverse service area, coupled with a good financial profile, highlighted by stable, albeit modest operational performance over the past three fiscal years, with expectations for some underlying pressure in fiscal 2015, although management expects to generate a positive operating surplus."
2. The rating assignment was also based on the system's acquisition of Phelps Memorial Hospital in Sleepy Hollow, N.Y., and Northern Westchester Hospital in Mount Kisco, N.Y., which S&P said gives the system a presence in Westchester County, further solidifying its market reach in the New York City metropolitan area.
3. The system's outlook is stable, which reflects S&P's view "of (North Shore-LIJ's) dominant market position and expansive footprint in the New York (City) metropolitan and Long Island service areas, coupled with expected positive operations and adequate cash flow in fiscal 2015."
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