Moody's rates Chum notes Aa2

Moody's Investors Service said it assigned an Aa2 rating to Centre Hospitalier de l'Universite de Montreal's (CHUM) debenture issuance of C$150 million.

The rating reflects the hospital's close relationship with the Province of Quebec, which regulates, funds and monitors the hospital sector closely, Moody's said.

These institutional factors, which ensure a close relationship between Quebec and Chum, are considered very strong credit attributes, the agency said.

The rating also considers the hospital's standalone financial performance, which is characterized by small deficits of about C$13 million per year, which is in line with provincial targets, Moody's said.

While deficits are a credit negative, their magnitude is managed by the province through management agreements, the agency added.

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