Moody's Investors Service last week upgraded the University of Virginia Medical Center's outstanding debt to Aa from A1, in conjunction with an upcoming bond sale.
The $52.3 million bond sale, to be issued by the Rector and Visitors of the University of Virginia on behalf of the medical center, is expected to be priced later this month.
"The medical center's position as a major teaching hospital and referral center for the state of Virginia remains a primary credit strength," Moody's said in a statement announcing the upgrade. "Given its strong commitment to provide a full array of high-quality services, the medical center has recently expanded its breadth of specialties" and added a new facility.
The agency said the medical center has strong coverage of "modest" debt levels and favorable operating results. Those factors, added to its ongoing investment in facilities, help ensure the institution's long-term viability and mitigate concerns Moody's has about the medical center's reliance on state support, the agency said.
