Yale New Haven Health downgraded to 'A1,' outlook revised to stable

Operating weakness and elevated debt have contributed to the downgrade of bonds held by Yale New Haven (Conn.) Health, Moody's said May 5. The bond rating slipped from "Aa3" to "A1" and the outlook was revised to stable from negative.

Management's focus on cost and revenue initiatives should lead to improved operating performance, Moody's added. The five-hospital system, whose flagship 1,541-bed Yale New Haven Hospital is spread over two campuses, has $1.7 billion in outstanding debt.

Debt could increase from the system's agreement in October to acquire the assets of three hospitals and ancillary providers from Prospect Medical Holdings, Moody's said.

"This is an opportunity to stabilize the Prospect hospitals, but it won't be easy," Yale New Haven CEO Chris O'Connor said at a recent meeting about the proposed acquisition. "This is a very difficult time for all Connecticut hospitals in the wake of the COVID-19 pandemic, and Yale New Haven Health is dealing with its own challenges."

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars