Fitch Ratings downgraded Burlington, Mass.-based Lahey Health System's series 2015F revenue bonds to "A" from "A+," affecting $262 million of debt.
The downgrade is a result of several factors, including Lahey Health's weaker than average operating performance, highly competitive market and anticipation of negative operating margins until fiscal year 2019. Fitch also acknowledged the health system's solid liquidity metrics and integrated health system with one management board overseeing physician, clinic and hospital operations.
The bonds remain on Rating Watch Negative due to a rating pressure from Fitch's revised rating criteria for nonprofit hospitals.