Moody’s Confirms NYU Langone Medical Center’s A3 Credit Rating
Medical Center Receives Overall “Stable” Outlook
NYU Langone Medical Center is pleased to announce Moody's Investors Service has confirmed the A3 ratings assigned to NYU Hospitals Center's bonds, removing the ratings from review for downgrade. Moody’s also rated NYU Langone’s outlook “stable.
We are thrilled Moody’s remains confident in NYU Langone’s A3 credit rating and stable outlook,” said Michael T. Burke, senior vice president and vice dean, corporate chief financial officer at NYU Langone Medical Center. “Of note, is the fact that despite severe operational disruptions initially suffered as a result of Hurricane Sandy, within 60 days nearly all services resumed within the Medical Center. Such recovery could not have been possible without the unwavering commitment of our faculty, staff and advocates to get NYU Langone back up and running.
According to Moody’s, the A3 rating confirmation follows evidence that NYU Langone’s inpatient volume has largely recovered after a material decline in the months immediately following Hurricane Sandy, November through January, due to the storm’s impact on the medical center’s facilities, which were closed through mid January 2013. The A3 rating remains well supported by NYU Langone’s trend of exceptionally strong financial performance, which has translated into a substantial growth in unrestricted cash and investments in each of the last four fiscal years; its profile as a large and growing academic medical center; and its close relationship and integration with Aa3-rated New York University (NYU) and NYU School of Medicine.
The stable rating outlook reflects Moody’s expectation that with NYU Langone’s rebound in both inpatient and outpatient volumes, the medical center will be able to generate operating performance that allows for continued growth in liquidity as well as the ability to absorb significant capital spending plans which are expected to be funded by cash-flow and new money debt borrowings.