Fitch Ratings affirmed the BB-plus rating on Mount Sinai Medical Center of Greater Miami and revised the outlook to positive last week.
The action affects $93.8 million of Series 2004 hospital revenue refunding bonds, $68.8 million of Series 2001A hospital revenue bonds, and $94.9 million of Series 1998 revenue bonds.
“The outlook revision to positive reflects the stronger operating profile of MSMC, after several years of operating losses, as evidenced by the hospital’s recent return to operating profitability in 2009, which continues into fiscal 2010,” Fitch said.
The hospital lost $15.7 million in fiscal 2008.
Through the six months ending June 30, Mount Sinai has experienced modest increases in inpatient admissions and emergency department visits, and sharp increases in cardiac services and births from the same period a year earlier, analysts said.
In fiscal 2009, it generated positive income from operations and solid operating cash flow, which has continued to improve through June 30.
Fitch said liquidity metrics have improved since fiscal 2008 due to improved operating results and management’s conservative investment strategy, but MSMC’s “debt burden remains high.”
Mount Sinai’s rating could be upgraded if it sustains its current financial performance and disposes of the Miami Heart Institute, which carries $108 million of debt, according to analysts. The medical center has been trying to sell the institute for some time.
“The outlook revision to positive reflects the stronger operating profile of MSMC, after several years of operating losses, as evidenced by the hospital’s recent return to operating profitability in 2009, which continues into fiscal 2010,” Fitch said.
Mount Sinai is a teaching hospital with 955 licensed beds, and is the only hospital in Miami Beach.
