NYU Hospitals Center Receives "A-" and "A3" Credit Ratings by Top Agencies, Fitch Ratings, Standard & Poor’s, and Moody’s Investors Service
Three leading credit ratings agencies—Fitch Ratings (Fitch), Standard & Poor’s (S&P), and Moody’s Investors Service (Moody’s)—have affirmed "A-" and "A3" credit ratings on NYU Hospitals Center’s (NYUHC) taxable revenue bonds and bonds issued by the New York State Dormitory Authority (DASNY) with a stable outlook.
Fitch and S&P assign "A-" ratings and a stable long-term outlook to Series 2013A bonds, and affirm existing "A-" ratings for Series 2012A. Moody’s assigns "A3" stable rating on Series 2013A bonds and affirms "A3" stable rating on Series 2012A.
The bonds include the issuance of $350 million of Series 2013A bonds, $250 million of existing Series 2012A bonds, and $503 million of existing bonds issued by the New York State Dormitory Authority (DASNY).
After a remarkable recovery, NYU Langone Medical Center’s main campus at 550 First Avenue is open and providing a broad array of outpatient and inpatient services. The Medical Center was closed for nearly two months in the aftermath of superstorm Sandy last October and began a phased recovery in December.
The rating affirmation reflects Fitch’s opinion that despite the major loss of patient revenues during the initial phase of the storm recovery, it believes NYUHC will return to its historical performance levels with strong operating results and solid debt service coverage by the end of 2014 fiscal year. S&P shares this opinion, and stated that NYUHC quickly reopened the majority of its clinical services soon after Sandy while simultaneously moving the organization forward strategically. Of note was the quick reopening of outpatient sites post-Sandy, which allowed management to transfer some services there from closed facilities. Moody’s highlighted that the assignment and affirmation reflects NYUHC operating momentum has resumed and signs of a full recovery are beginning to emerge.
NYUHC remains focused on construction plans, which will triple the size of its ED, build an energy plant, construct the new Helen L. and Martin S. Kimmel Pavilion, and once the pavilion is complete, begin renovation of the medical center’s Tisch Hospital, its flagship acute care facility. Strategic focus remains on the expansion of ambulatory and physician presence in Manhattan and surrounding boroughs. Outpatient sites, including the Ambulatory Care Center, Center for Musculoskeletal Care, and physician’s practices in its growing ambulatory network, make up almost half of NYUHC’s business and more than half of its operating margin.