Press Release|Public Finance
KBRA Affirms BBB- Rating for Debt Guaranteed by Montefiore Medical Center; Outlook Remains Stable
5 Jun 2024 | 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 Notes 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.
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.
- Socioeconomic profile of patient population which disproportionately exposes MMC to governmental payors.
Rating Sensitivities
For Upgrade
- Sustained improvement in financial performance.
- Reduction in debt leverage.
For Downgrade
- Sustained weak liquidity.
- Higher debt, significant capital plans, or additional financial demands on MMC from system affiliates.
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