Press Release|Public Finance
KBRA Affirms BBB- Rating for Debt Guaranteed by Montefiore Medical Center; Outlook Remains Stable
4 Jun 2025 | New York
KBRA affirms the long-term rating of BBB- with a Stable Outlook for the Taxable Revenue Bonds, 2017 Series (Payable Solely from Albert Einstein College of Medicine Promissory Note Guaranteed by Montefiore Medical Center).
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
Credit Positives
- Dominant market position in primary service area (Bronx County, NY) and a growing presence in affluent suburbs.
- Strong clinical reputation supporting a gradual recovery in both inpatient and outpatient volumes.
- Recognition as a leader in care management, infrastructure development, and population health.
- Improved state funding primarily through the Directed Payment Template Program
Credit Challenges
- Limited financial flexibility, highlighted by weak liquidity cushion relative to operations and leverage.
- A relatively recent return to profitability, following successive years of deep operating losses during the pandemic.
- Disproportionate exposure to governmental payors, which subjects MMC to an evolving Medicaid funding landscape.
Rating Sensitivities
For Upgrade
- Significant increase in liquidity.
- Sustained improvement in financial performance.
- Reduction in debt leverage.
For Downgrade
- Continued deterioration in already weak liquidity.
- Higher debt, significant capital plans, or additional financial demands on MMC from system affiliates.
- Significant changes to state funding including participation in the Directed Payment Template program.
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