KBRA Assigns BBB-, Stable Outlook to Westchester County Health Care Corporation, NY Revenue Bonds
26 Oct 2023 | New York
KBRA assigns a long-term rating of BBB- with a Stable outlook to Revenue Bonds, Series 2023 (Westchester Medical Center Obligated Group Project) issued by the Westchester County Local Development Corporation, NY on behalf of Westchester County Health Care Corporation ("the Corporation").
Key Credit Considerations
The rating was assigned because of the following key credit considerations:
- Expansive size and scope of operations, which facilitates volume growth and net patient revenue generation.
- Adequate, stable operating cash flows supporting repayment of debt.
- Manageable future capital needs beyond the current project, none of which are expected to be debt financed.
- Heavily leveraged balance sheet, largely reflecting the capital intensive nature of operations.
- Considerable reliance on governmental payors, which limits the Corporation’s ability to improve margins.
- Weak, though stable, unencumbered liquidity.
- Significantly strengthened, sustained improvement in operating performance leading to increased liquidity and moderating leverage.
- While not expected, fundamental changes in how governmental payors reimburse providers for care.
- Declining patient volumes which reduce the Corporation’s ability to maximize net patient revenues.
- Additional debt issuance without a commensurate increase in resources available for repayment.
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