Moody’s additionally affirmed the “Baa3” rating on St. Joseph’s outstanding revenue bonds.
The assignment and affirmation are a result of several factors, including the health system’s designation as a safety-net provider, strong operating cash flow and improved liquidity. Moody’s also acknowledged the risks associated with SJHS’ upcoming EMR installation and charity care subsidy reductions from the state.
The outlook is negative, reflecting Moody’s expectation that increased capital spending will cause operating performance to remain weak.
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