WASHINGTON — Oregon Health and Science University will sell $100 million of federally-taxable debt next week.
OHSU, the only medical school in Oregon, is expected to sell the revenue bonds in a negotiated transaction July 9. They carry an A1 rating from Moody's Investors Service, a AA-minus from Standard & Poor's, and a AA-minus from Fitch Ratings. Fitch and Standard & Poor's have both assigned a stable outlook rating to the bonds, while Moody's has assigned a positive outlook.
The bond proceeds will be used for various purposes, including reimbursement of a $50 million note to health plan provider Moda Health. The bonds are secured by a gross revenue pledge. The rating agencies said OHSU has a strong history of public support and important place in its community.
"OHSU's unique position as the only medical school in the state of Oregon, combined with its strong research capabilities, unique clinical offerings, local economic importance, and long-established government support, provide for a level of inherent stability, and contribute to unique credit strengths," Moody's said in a report.
OHSU is an independent public corporation and a component of the state, and is treated as a political subdivision of the state for bond purposes. It is governed by a 10-member board of directors appointed by the governor and confirmed by the state senate. It is the largest employer in Portland.