Additionally, S&P downgraded its rating on Lahey Health System’s Winchester (Mass.) Hospital’s series 2010H bonds to “A-” from “A,” affecting $69 million of debt.
“The downgrade reflects material financial underperformance year to date and LHS’ limited balance sheet strength, which does not provide sufficient flexibility to offset its weak earnings during an expected multi-year turnaround effort,” said Cynthia Keller, an S&P Global Ratings analyst.
The outlook is stable, reflecting S&P’s expectation that the health system’s enterprise strengths will help improve its financial performance. Additionally, the stable outlook reflects LHS’ adequate debt service coverage and unrestricted reserves.
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