Multiple hospitals and health systems have suffered downgrades to their financial ratings this year amid rising expenses, ongoing operating losses and challenging work environments.
Here are four hospitals and health systems that received credit rating downgrades from Fitch Ratings or Moody’s Investors Service in 2025:
Frederick (Md.) Health’s rating was downgraded to “BBB” from “BBB+” by Fitch. The downgrade reflects a slower-than-expected recovery in its operating performance since fiscal 2022, Fitch said.
Norman (Okla.) Regional Health System’s rating was downgraded to “Caa2” from “B1” by Moody’s. The downgrade reflects the system’s lack of financial flexibility, with weak liquidity equivalent to 15 to 20 days cash on hand, Moody’s said. Cash is entirely reliant on a fully drawn bank line, which increases the likelihood of default and a low recovery value.
Palomar Health’s rating was downgraded to “Caa1” from “B2” by Moody’s. The Escondido, Calif.-based system’s downgrade downgrade reflects “further thinning of liquidity resulting in 15 to 20 days cash on hand and limited ability to meaningfully improve given ongoing significant cash flow losses,” Moody’s said.
UofL Health’s rating was downgraded to “BBB” from “BBB+” by Fitch. The Louisville, Ky.-based system’s downgrade was due to a weaker-than-expected financial performance in fiscal 2024 and a slow anticipated recovery over the coming years, Fitch said.
