City of Hope Outlook Bumped to Positive

City of Hope, a Los Angeles County research hospital, on Tuesday received an affirmation from Moody's Investors Service of its A1 rating, along with an outlook bump from stable to positive ahead of plans to price $343 million in bonds.

Fitch Ratings rated the bonds at AA-minus and AA-minus/F1-plus a day later.

The bonds to be issued by the California Health Facilities Financing Authority will be sold in three series. The $278.2 million Series 2012A fixed-rate revenue bonds will price on Nov. 1. Two sets of variable-rate revenue bonds in equal amounts of $32.5 million will price on Nov. 7.

Assignment of the A1 rating is attributable to City of Hope's multi-year trend of strong financial performance and favorable leverage metrics, combined with its strong brand name and number two market share for oncology services in the competitive Los Angeles market, Moody's analysts said.

The rating also reflects City of Hope's role as a major research organization, with strong fundraising capabilities and a favorable reputation in Southern California.

Moody's also affirmed its A1 rating on the Series 1999A bonds, expected to be refinanced with the latest transaction. Fitch analysts also affirmed its AA-minus credit rating on the research hospital's $150.3 million of certificates of participation.

The Duarte, Calif.-based research hospital specializes in the treatment of cancer, diabetes, HIV/AIDS and other life-threatening diseases.

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Healthcare industry California
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