19 recent hospital, health system credit rating actions

The following hospital and health system credit rating actions occurred in the last three weeks. They are categorized by downgrade, upgrade, affirmation or other.

Upgrade:

  • HonorHealth (Scottsdale, Ariz.)  —  issuer default rating upgraded to "A+" from "A" (Fitch)
  • Palos Community Hospital (Palos Heights, Ill.) — revenue bond rating increased to "AA+" from "AA-" after the series 2010 C debt was acquired by Chicago-based Northwestern Medicine (Fitch)

Affirmation:

  • Atlantic Health System's (Morristown, N.J.) — issuer rating affirmed at "Aa3" (Moody's)
  • Baptist Health Care Corp. (Pensacola, Fla.) — "BBB" issuer default rating affirmed. (Fitch)
  • Beth Israel Lahey Health (Boston) — "A3" rating affirmed on $1 billion of outstanding debt (Moody's)
  • Children's Hospital of the King's Daughters (Norfolk, Va.)  — issuer rating affirmed at "A2" (Moody's)
  • Christus Health (Irving, Texas) — "A+" issuer default rating affirmed (Fitch)
  • Franciscan Health (Mishawaka, Ind.) — "Aa3" rating affirmed on about $750 million of rated debt (Moody's)
  • Hawaii Pacific Health (Honolulu) — "AA-" issuer default rating affirmed (Fitch)
  • Hurley Medical Center (Flint, Mich.) — "BBB-" issuer default rating affirmed  (Fitch)
  • Kettering Health Network (Dayton, Ohio)  — issuer rating affirmed at "A2" (Moody's) 
  • Novant Health (Winston Salem, N.C.) — long-term rating affirmed at "Aa3" (Moody's)
  • NYU Langone Hospitals (New York City)  —  "A3" rating affirmed, affecting $2.8 billion of debt (Fitch)
  • Palomar Health (Escondido, Calif.) — revenue bond rating affirmed at "Ba1" (Moody's)
  • Seattle Children's  — "Aa2" rating affirmed on the health system's parity debt (Moody's)
  • University of Colorado Health (Aurora) — "AA" issuer default rating affirmed (Fitch)
  • Valley Children's Healthcare (Madera, Calif.) —  "A1" rating affirmed on outstanding debt (Moody's) 

Other rating actions:

  • Northwestern Medicine (Chicago) — assigned "AA+" issuer default rating after Palos Community Hospital joined the health system (Fitch)
  • Summa Health System (Akron, Ohio) — "A-" issuer default rating placed on rating watch negative after announcing it has redeemed HealthSpan Partner's membership interest (Fitch)

More articles on healthcare finance:
State-by-state breakdown of 897 hospitals at risk of closing
Private equity pushes into healthcare: 8 latest deals
'Tumultuous' year for hospitals results in 55% drop in median operating margin, Kaufman Hall finds

 

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