Summary: New York City Health and Hospitals Corp.; General Obligation

S&P Global Ratings assigned its 'A+' long-term rating to New York City Health and Hospitals Corp.'s (HHC) approximately $340 million series 2020A health system bonds. The outlook is negative. The city's HHC health system bonds are rated two notches below the general obligation rating based on the city's moral obligation pledge to replenish the special capital reserve, subject to appropriation, which is funded at maximum annual debt service (MADS). However, health care reimbursement revenue, including federal and state Medicaid funds assigned to bondholders provided through a waiver from the Centers for Medicare and Medicaid Services and the New York State Department of Social Services, also secures the bonds. On a daily basis, revenue is assigned pursuant to a triparty agreement

...S&P Global Ratings assigned its 'A+' long-term rating to New York City Health and Hospitals Corp.'s (HHC) approximately $340 million series 2020A health system bonds. The outlook is negative. The city's HHC health system bonds are rated two notches below the general obligation rating based on the city's moral obligation pledge to replenish the special capital reserve, subject to appropriation, which is funded at maximum annual debt service (MADS). However, health care reimbursement revenue, including federal and state Medicaid funds assigned to bondholders provided through a waiver from the Centers for Medicare and Medicaid Services and the New York State Department of Social Services, also secures the bonds. On a daily basis, revenue is assigned pursuant to a triparty agreement to a lockbox until such time that it meets monthly debt service requirements and any amounts necessary to fund the capital reserve. HHC is required to have net cash available for debt service be at least 1x debt...

Summary