Moody's Investors Service said it has upgraded The New York Methodist Hospital's rating to Baa1 from Baa2.
The outlook remains positive.
The rating upgrade is due to further clarification on future capital and debt plans, a significant increase in investments, and sustained improvement in operating margins. The hospital has a long track record of strong volume and revenue growth.
The positive outlook reflects the expectation that margins will be sustained and investments will continue to grow to support a sizable debt issuance in 2015 and possible equity contribution toward a project.
The hospital is in the early planning stages of a large ambulatory care project, which could result in up to $250 million in new debt.
A further rating upgrade will be considered following definitive financing plans and financial projections and an evaluation of the hospital's ability to support the project and manage construction and execution risks.
