Moody's Investors Service affirmed its "A2" rating on Peoria, Ill.-based OSF Healthcare System, affecting $1.1 billion of debt.
The affirmation is a result of the health system's solid liquid investment position and large presence in its market. Moody's also acknowledged the OSF Healthcare's sizable debt, highly competitive market and elevated direct leverage.
The outlook was revised to negative from stable, reflecting the health system's lower than expected margins and upcoming risks associated with pending contracts with payers and a planned acquisition of two hospitals.