Moody’s also affirmed the “A2” rating on Agnesian’s outstanding debt.
The rating actions are a result of several factors, including Agnesian’s strong market position, favorable growth in unrestricted cash and light debt risks.
The outlook was revised to negative from stable, which Moody’s said was due to the health system’s weakening operating margins and deviation from the fiscal year 2016 budget. Additionally, Moody’s expects the system’s operating performance and liquidity reserves will remain weak in comparison to peers.
More articles on healthcare finance:
Children’s Hospital of LA to rename inpatient floor after donation from Panda Express
Massachusetts Gov. Charlie Barker urges lawmakers to reconsider Medicaid reform
Nasdaq, S&P see record highs thanks to healthcare, tech
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.