Wall Street firm says UMass Memorial is a well-run organization in a good financial position
Photo | Grant Welker
UMass Memorial Medical Center's Memorial Campus in Worcester
Wall Street ratings agency Fitch Ratings of New York has affirmed Umass Memorial Health Care, Inc. of Worcester is a healthy organization in a stable financial position, according to a Wednesday report.
The report is designed for potential investors looking at buying bonds issued by UMass Memorial, or make other investments in the $2.5-billion organization. The credit rating firm affirmed the healthcare provider’s A- Issuer Default Rating and, secondarily, also affirmed an A- bond rating.
“The affirmation of the IDR and the bond rating at ‘A-’ is based on UMass’s market position as a provider of high acuity services to a large area with a leading market share and a relatively moderate debt load, which is significantly front loaded, providing additional credit flexibility,” Fitch wrote in its report.
While the network relies on some state supplemental funding, which Fitch said presents a risk to operating flexibility, an agreement with the state has stabilized funding through 2022.
Despite a myriad of financial challenges brought on by the coronavirus pandemic, the network’s revenues were back at pre-pandemic levels as of March, per Fitch.
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