Moody’s upgraded Toledo, Ohio-based ProMedica Health System’s rating to “Ba1” from “Baa2.”
The upgrade reflects the successful completion of corporate restructuring initiatives and “greater discipline managing core operations, which will help sustain material improvement in financial performance and liquidity,” Moody’s said in an April 17 report.
“The system has ample cushion to withstand market volatility and potential federal funding cuts,” the ratings agency said.
ProMedica has a positive outlook at its new rating, reflecting expectations that operating cashflow margins will be sustained at 8% to 9% in fiscal 2025.
The health system reported an operating income of $79.7 million (2.5% operating margin) in 2024, up from an operating loss of $33.2 million (-1.1% margin in 2023.
