At the same time, Fitch assigned its “BB” issuer default rating to MetroHealth.
The downgrade and assignment are based on several factors, including the health system’s weak adjusted capital ratios, heavy debt burden, highly competitive service area and status as a safety-net provider. Fitch favorably viewed MetroHealth’s sound operating margins, which are expected to strengthen its financial profile in the upcoming years.
The outlook is stable at the lower rating.
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