KBRA Assigns BBB-, Stable Outlook to Westchester County Health Care Corporation, NY Revenue Bonds

KBRA assigns a long-term rating of BBB- with a Stable outlook to Revenue Bonds, Series 2023 (Westchester Medical Center Obligated Group Project) issued by the Westchester County Local Development Corporation, NY on behalf of Westchester County Health Care Corporation ("the Corporation").

Key Credit Considerations

The rating was assigned because of the following key credit considerations:

Credit Positives

• Expansive size and scope of operations, which facilitates volume growth and net patient revenue generation.
• Adequate, stable operating cash flows supporting repayment of debt.
• Manageable future capital needs beyond the current project, none of which are expected to be debt financed.

Credit Challenges

• Heavily leveraged balance sheet, largely reflecting the capital intensive nature of operations.
• Considerable reliance on governmental payors, which limits the Corporation’s ability to improve margins.
• Weak, though stable, unencumbered liquidity.

Rating Sensitivities

For Upgrade

• Significantly strengthened, sustained improvement in operating performance leading to increased liquidity and moderating leverage.
• While not expected, fundamental changes in how governmental payors reimburse providers for care.

For Downgrade

• Declining patient volumes which reduce the Corporation’s ability to maximize net patient revenues.
• Additional debt issuance without a commensurate increase in resources available for repayment.

To access rating and relevant documents, click here.

Methodologies

Public Finance: U.S. Not-For-Profit Healthcare Rating Methodology

ESG Global Rating Methodology

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

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