Fitch: West Penn Finances Are Improving

Fitch Ratings recently affirmed the B+ rating on West Penn Allegheny Health System’s $737 million of revenue bonds, and analysts went one step further by upgrading the health system’s outlook to stable from evolving.

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The news from Fitch stands in stark contrast to recent reports issued by Moody’s Investors Service and Standard & Poor’s on WPAHS, one of the largest health systems in the Pittsburgh area. Last week, Moody’s affirmed the junk-level status of WPAHS’ bonds and said the troubled health system needs more than the $475 million in pledged funds from potential suitor and Pittsburgh-based health insurer Highmark.

In May, S&P downgraded the credit rating of WPAHS to B- from B+, citing a “deterioration in WPAHS’s overall 2012 finances.”

Fitch analysts said WPAHS has at least narrowed its operating losses in the most recent quarter, and the “continued progress and expected finalization of the affiliation with Highmark” is viewed as a positive trend, according to the report.

More Articles on West Penn Allegheny Health System:

Moody’s: West Penn Needs More Than $475M From Highmark to Survive

7 Hospitals Receive Credit Downgrades in Past Month

West Penn Could Oppose UPMC’s Request to Halt Antitrust Suit

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