Sale of health system improves Loyola’s credit rating
Posted by loyolastudentdispatch on July 10, 2011
Moody’s Investors Service has upgraded Loyola University Chicago’s long-term rating to A2 from A3 following the successful closing of Loyola’s sale of Loyola University Health System (LUHS) to Trinity Health.
Before the June 30 sale, LUHS was a wholly-owned subsidiary of Loyola and was struggling through operating and financial challenges. The sale of LUHS enables Loyola to fully focus on its own operations and academic programs, including student recruiting and retention, and needed capital projects.
Moody’s overall outlook for Loyola is as follows:
“Loyola University of Chicago’s stable outlook reflects expectations of continued sound student demand and growth in tuition revenues, coupled with good operating cash flow and continued good financial resource and liquidity, although growing at a slower rate due to capital investment. “
Click here for the full credit report: Moody’s
