NEW YORK - Moody's Investors Service said it has upgraded Yale-New Haven Hospital, Conn.'s (YNHH) underlying bond ratings to Aa3 from A1.
This action affects approximately $104 million of Series K variable rate demand obligation (VRDO) revenue bonds, $107 million of Series L VRDO revenue bonds, and $174 million of Series J fixed rate revenue bonds issued through the Connecticut Health and Educational Facilities Authority.
The upgrade reflects YNHH's improved operating performance in fiscal year (FY) 2008 and FY 2009, continued volume gains, and maintenance of adequate liquidity ratios despite facing a challenging economic environment and dealing with a significant construction effort.
The outlook is revised to stable from positive at the higher rating level. The Series K VRDO bonds are supported by a letter of credit (LOC) from JPMorgan Chase Bank and the Series L VRDO bonds are supported by an LOC from Bank of America.
