S&P Global Ratings downgraded Reading (Pa.) Health System's rating to "A+" from "AA-" on the health system's long-term revenue refunding bonds.
"The downgrade reflects a lighter financial profile that is now more commensurate with an 'A+' rating," said S&P analyst Margaret McNamara. "While we believe the management team has done a good job implementing a performance improvement plan and expect management will continue to make steady gains in operating performance, we do not believe some key metrics will be commensurate with the prior rating."
The outlook is stable, reflecting S&P's expectation the health system's balance sheet provides the organization with some flexibility while management implements its strategic vision.