Moody’s downgrades Wake Forest Baptist to ‘A2’, outlook stable

Moody’s Investors Service has downgraded Winston-Salem, N.C.-based Wake Forest Baptist to “A2” from “A1,” affecting $603.8 million in debt.

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The downgrade reflects the financial setbacks WFB has experienced over the last several years, including a large accounts receivable write off that impacted fiscal year 2014.

In addition, the hospital’s operating performance deteriorated for the third consecutive year in fiscal year 2014, with absolute operating cash flow declining to approximately one-third of the peak level produced in fiscal year 2011.

WFB’s outlook is stable at the lower rating level due to the hospital’s fundamental strengths, including a strong market position and clinical reputation. WFB is the only academic medical center in its service area.

More articles on hospital credit ratings:

Moody’s revises MedStar Health’s outlook to positive 
Moody’s affirms Aspen Valley Hospital District’s ‘Baa2’ rating, outlook stable 
Fitch affirms Harris County Hospital District’s ‘A’ rating, outlook stable 

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