Naples (Fla.) Comprehensive Health’s credit rating was downgraded by Fitch and Moody’s on Feb. 4.
Fitch lowered the health system’s rating to “BBB+” from “A-.” Moody’s lowered the rating to “Baa1” from “A3.”
Moody’s said its downgrade reflects NCH’s slower-than-expected margin improvement. Moody’s said the system’s management expects improvement to a 6% operating cash flow margin through at least fiscal 2026, “which remains materially lower than prior projections and below peers.”
Fitch said it expects NCH’s margins to move toward breakeven in fiscal 2026 through volume growth, labor initiatives and continued revenue cycle work. The credit ratings agency said that NCH’s high leverage and ongoing capital needs limit balance-sheet flexibility, even with the system’s leading market position and strong philanthropy.
NCH has a stable outlook at its new rating with both Fitch and Moody’s.
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