NEW YORK - Moody's Investors Service said it has upgraded to A3 from Baa2 the ratings assigned to St. Peter's Hospital, N.Y.'s (now known as St. Peter's Health Partners) $247.3 million of outstanding bonds issued through the city of Albany Capital Resource Corporation and city of Albany Industrial Development Authority. The outlook is revised to stable from positive at the higher rating level.
The two notch upgrade reflects the favorable impact on St. Peter's Hospital following the October 1, 2011 merger of St. Peter's Health Care Services (the parent of St. Peter's Hospital and all subsidiaries), Northeast Health and Seton Health System (collectively now known as St. Peter's Health Partners) and the resultant increase in size, scale and market share.
St. Peter's Health Partners (SPHP) is a full-service one billion dollar health system operating in Albany, Troy and the surrounding service area and commands the leading market share.
On a combined basis, SPHP's financial performance is favorable with above average balance sheet indicators, a moderate debt position and manageable capital plans.
Like St. Peter's Hospital has enjoyed, this newly created system will benefit from its ownership by A2-rated Catholic Health East which continues to demonstrate its financial support.
The system is in its infancy stages and subject to short-term integration and execution risk; however, we expect longer-term financial improvement as it gains efficiencies and lowers costs.
