The outlook change reflects the rating agency’s opinion margin challenges, declining liquidity related to Medicaid cuts and increasing bad debt are expected to continue to suppress the health system’s performance and weaken leverage metrics.
Moody’s Investors Service also affirmed the “A2” rating on the health system’s bonds, affecting $385 million of outstanding debt. The ratings affirmation is based on a number of factors, including the health system’s strong market position and modest debt structure.
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