S&P Global Ratings downgraded the long-term rating on Cleveland-based MetroHealth System's series 2009B taxable hospital revenue bonds to "BBB-" from "A-."
S&P also assigned a "BBB-" long-term rating to the health system's $915 million of series 2017 fixed-rate bonds.
"The rating action primarily reflects our view of MetroHealth's large capital project and the related increased pro forma debt levels from the series 2017 issuance coupled with an existing financial profile that we consider somewhat light," said S&P analyst Suzie Desai.
The outlook is stable, reflecting S&P Global Ratings' opinion the health system will return to operating stability through interim 2017 with the implementation of several key initiatives.