The ratings agency also revised the health system’s outlook to positive from stable.
“The ‘CCC’ rating reflects our opinion that [VHS’] ongoing ability to repay debt service is dependent on favorable business, financial, and economic conditions, although we also consider bankruptcy risk more remote than at the last rating,” said S&P analyst Cynthia Keller.
“The positive outlook revision reflects improved, although still weak, operating performance driven by growing revenue and volume…[it also] reflects an increasing balance sheet cushion derived from financial support provided and arranged by Blue Mountain Capital Management,” Ms. Keller added.
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