Earlier this month, WPAHS recorded a net loss of $19.8 million in the third quarter of its 2012 fiscal year, and in the nine months ended March 31, 2012, WPAHS has lost $75.7 million.
S&P analysts also said the health system’s less-than-desirable financial profile could have led to an even lower rating, but remaining in the “B” category reflects the increased likelihood and benefits of WPAHS merging with health insurer Highmark.
In a statement, WPAHS officials said S&P’s downgrade was “extremely disappointing and oddly timed in light of the recent progress” it was making, such as the reopening of West Penn Hospital’s emergency department and ongoing support from Highmark.
All three major credit rating agencies have downgraded WPAHS’ debt since November. Fitch Ratings downgraded WPAHS’ bonds to B+ from BB-, while Moody’s Investors Service’s ratings for the health system went to Caa1 from B2.
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