Concurrently, Moody’s affirmed its “A3” rating on Tower Health’s outstanding debt, affecting approximately $940 million of debt.
The assignment and affirmation are a result of Tower Health’s strong market position, historically stable operating performance and favorable absolute liquidity metrics. Moody’s also acknowledged the risks associated with Tower Health’s recent acquisition of five for-profit hospitals, which increased the health system’s debt burden.
The outlook is negative, reflecting the execution risk of integrating the five formerly for-profit hospitals into the nonprofit culture of Tower Health.
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