Moody’s assigns ‘A3’ rating to Tower Health’s bonds

Moody’s Investors Service assigned its “A3” rating to West Reading, Pa.-based Tower Health’s proposed $584 million series 2017 bonds.

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Additionally, Moody’s downgraded Tower Health’s outstanding ratings to “A3” from “A2.”

The assignment is a result of several factors, including Tower Health’s solid market position, historically healthy operating performance and favorable absolute liquidity metrics. Moody’s also acknowledged the increased risk associated with the health system’s recent purchase of five hospitals, which resulted in the downgrade of Tower Health’s outstanding ratings.

The outlook is revised to negative from stable, reflecting the increased risk of integrating five formerly for-profit hospitals into the nonprofit health network. 

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