Moody's Investors Service has downgraded the rating to "A3" from "A2" on Louisville, Ky.-based Baptist Healthcare System's $584 million of outstanding rated debt.
The downgrade is based on several factors, including Baptist's decline in operating performance in the second half of fiscal year 2015, and Moody's expectation that financial pressures will continue in fiscal year 2016.
The outlook is revised to negative, reflecting Moody's belief that payer challenges will cause great pressure for Baptist over the next 12 to 18 months.