S&P Global Ratings downgraded the long-term rating on Tulsa, Okla.-based St. John Health System's series 2012 and series 2007 bonds to "AA-" from "AA."
"The rating action reflects our view of continued declines in St. John's unrestricted reserves and an overall balance sheet that we believe is just adequate coupled with weakening operating margins through interim 2017," said S&P analyst Suzie Desai.
The outlook is stable, reflecting S&P Global Rating's favorable opinion of the health system's good business position and adequate cash flow.