Children's Hospital Of Boston; Hospital

S&P Global Ratings affirmed its 'AA' rating on Children's Hospital of Boston's (Children's) $350 million series 2017A taxable bonds. At the same time, we affirmed our 'AA' long-term rating on Massachusetts Development Finance Agency's series 2014P-1 bonds issued for Children's. The outlook is stable. The rating affirmation reflects Children's exceptional balance sheet metrics coupled with a robust enterprise profile reflecting its clinical strengths, market position, and lower-than-expected reliance on Medicaid compared with other pediatric hospitals. While cash flow and debt service coverage are light for the rating level, due in part to research support, we believe Children's balance sheet strengths and strong philanthropy offset this limitation. Also contributing to the rating is Children's extraordinarily high unrestricted reserves. We anticipate that

...S&P Global Ratings affirmed its '##' rating on Children's Hospital of Boston's (Children's) $350 million series 2017A taxable bonds. At the same time, we affirmed our '##' long-term rating on Massachusetts Development Finance Agency's series 2014P-1 bonds issued for Children's. The outlook is stable. The rating affirmation reflects Children's exceptional balance sheet metrics coupled with a robust enterprise profile reflecting its clinical strengths, market position, and lower-than-expected reliance on Medicaid compared with other pediatric hospitals. While cash flow and debt service coverage are light for the rating level, due in part to research support, we believe Children's balance sheet strengths and strong philanthropy offset this limitation. Also contributing to the rating is Children's extraordinarily high unrestricted reserves. We anticipate that Children's cash flow will be sufficient to accommodate its planned $3.16 billion capital spending over the next 10 years while also keeping...

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