Philadelphia-based Temple University Health System had its "Baa3" rating affirmed for outstanding debt but saw its outlook revised to stable from positive, Moody's said July 25.
The system, which has $394 million of outstanding debt, according to the research note, has ongoing cash flow constraints in a highly competitive operating environment and continues to deal with "persistent" labor pressures.
Operating performance is gradually expected to improve, starting in fiscal 2024, due to various management initiatives, Moody's said. The system is also facing capital expenditure challenges with its aging facilities.
Temple Health, which operates three acute care hospitals as well as its Fox Chase Cancer Center and inpatient behavioral health and women's facilities, saw its outlook similarly revised by S&P Global on March 15.