The Chesapeake Regional Medical Center this week was upgraded to A2 from A3 by Moody’s Investors Service based on its consistently strong balance sheet. The action affects $39.4 million of fixed-rate debt issued in 2004.
The Chesapeake Hospital Authority is the medical center’s governing board and issuer. The hospital has had double-digit cash flow margins over the last five years and had 275 days cash on hand at the end of fiscal 2009. It has low exposure to Medicaid claims, which accounted for 8.6% of gross revenues in fiscal 2009.