Now the UMC is ostensibly going to venture into the private bond market in search of bonds rated worse than "highly speculative" based on the current interim university hospital model:
The firm based its projections on UMC maintaining cash reserves equivalent to 100 days of expenses. That is well beyond the month-to-month operating capacity of the existing Interim LSU Public Hospital. Yet, analysts noted, that still trails the standards of bond ratings agencies. The median cash on hand for not-for-profit health care entities with BBB-rated debt, according to Moody's, is 121 days, Kaufman Hall said. The BBB rating is the bottom classification of debt rated "highly speculative," 15 steps short of a prime rating.
This makes the City Council's move to revoke the streets on Thursday look even less wise.