Standard and Poor’s Affirms NYU Hospital Center’s “A-” Credit Rating
Leading credit ratings agency Standard & Poor’s (S&P) has affirmed NYU Hospitals Center’s (NYUHC) taxable revenue bonds and bonds issued by the New York State Dormitory Authority (DASNY) an “A-“ rating.
Standard & Poor's Ratings Services affirmed its 'A-' rating on $448 million series 2011A, 2007B, 2007A, and 2006A fixed-rate bonds issued by the New York State Dormitory Authority for NYUHC. In addition, they affirmed the 'A-' rating on $600 million taxable series 2012A and 2013A bonds issued by NYUHC with a stable outlook.
Since Superstorm Sandy almost two years ago, operations at NYUHC have returned to normal, especially with the April opening of the new emergency department, the Ronald O. Perelman Center for Emergency Services, which allows the facility to accept 911 ambulance services and can accommodate more patients. NYUHC is approaching its pre-storm operating and financial profile even though there are still 36 beds out of service.
NYUHC continues its focus on ambulatory strategy. It recently received $150 million bank loan to finance the acquisition of a nearby building, half of which was under lease to NYUHC clinical services – a strategy expected to be financially accretive. NYUHC’s main hospital sites are located in New York City, but it receives about three-quarters of all admissions from allfour of the New York City boroughs as well as Nassau County on Long Island. Almost half of NYUHC's business and over half of its operating margin comes from outpatient sources, including the Laura and Isaac Perlmutter Cancer Center, Ambulatory Care Center, Center for Musculoskeletal Care, and various physician practices throughout Manhattan, Queens, Long Island, Westchester, and Brooklyn.
S&P affirms that although NYUHC suffered a loss through Superstorm Sandy, they were able to quickly reopen the majority of its clinical services soon after Sandy while simultaneously moving the organization forward strategically.
Deborah (DJ) Haffeman