Moody’s downgrades Lehigh Valley Health Network to ‘A2’

Moody’s Investors Service downgraded Allentown, Pa.-based Lehigh Valley Health Network to “A2” from “A1,” affecting $510 million of outstanding debt.

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The downgrade is a result of several factors, including the health network’s modest margins, increasingly competitive market, upcoming period of high capital spending and heightened execution risks as LVHN continues to grow through acquisitions. Moody’s also acknowledged LVHN’s strong market position in a demographically favorable service area and adequate liquidity metrics.

The outlook is stable at the lower level, reflecting LVHN’s strong market position and physician network.

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