Hartford-based Connecticut Children’s credit rating was downgraded to “A” from “A+” by Fitch.
The downgrade reflects an operating loss and weakened unrestricted liquidity in fiscal 2025, which ended Sept. 30, Fitch said in its April 1 report.
Fitch said Connecticut Children’s patient volumes were softer in 2025, in part due to the departure of five cardiologists. The ratings agency expects patient demand to remain strong, however, and volumes should recover as key pieces of a tower project come online, including the second floor of a new and expanded NICU, while outpatient services continue to grow.
Connecticut Children’s has a stable outlook at its new rating, which Fitch said reflects stronger fundraising. The state’s only independent, free-standing children’s hospital expects to reach its $250 million fundraising goal in the next few years, boosted by a $50 million gift it received in October.
Philanthropic support is expected to stabilize the hospital’s balance sheet as it finishes the tower project and implements an operational improvement plan that Fitch believes is achievable within two years.
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