The ratings assignment is based on a number of factors, including the health system’s material cash flow losses and liquidity declines.
The ratings agency also affirmed the “Caa1” and “Caa1/SG” ratings on GSHS’s outstanding series 2015A bonds, affecting $145 million of debt.
The outlook was revised to stable from negative, reflecting Moody’s Investors Service’s expectation GSHS’s merger with Irving, Texas-based Christus Health will have lasting management and financial benefits and will reduce acceleration risk in the near-term following expected waiver of financial covenants.
More articles on healthcare finance:
Fitch upgrades New York City Health + Hospitals’ rating to ‘AA-‘
Moody’s assigns ‘MIG1’ rating to South Central Regional Medical Center’s notes
S&P revises Massachusetts Ear and Eye’s outlook to negative
