The rating affirmation is based on several factors, including TUHS’ position as a safety net provider in Philadelphia and its role as the academic medical center for Temple University.
The system also faces challenges, including TUHS’ highly leveraged balance sheet and an especially competitive market.
The rating outlook has been revised to developing from negative, reflecting the bifurcated direction the credit profile can take in the near term when balancing TUHS’ operational improvement with the uncertainty regarding receipt of Commonwealth appropriations.
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