12 recent hospital, health system credit rating actions

An update on credit rating activity since Nov. 15 at a dozen hospitals or health systems:

Moody's Investors Service

1. Moody's downgraded Lansing, Mich.-based Sparrow Health System's revenue bonds to "A2" from "A1," affecting about $265 million of rated debt. The downgrade reflects the system's third consecutive year of weaker operating performance.

2. Moody's assigned its "Aa3" rating to Albuquerque, N.M.-based Presbyterian Healthcare Services' 2019 series A and B revenue bonds. The agency also affirmed its "Aa3" rating on the health system's outstanding parity debt, affecting about $774 million of rated debt  

3. Moody's affirmed New Orleans-based Ochsner Clinic Foundation's "A3" rating, affecting about $937 million of outstanding revenue bonds. 

4. Moody's assigned its "Aa3" rating to Portland-based Oregon Health & Science University's proposed $322 million series 2019 financing.

5. Moody's assigned its "Aa3" ratings to Livonia, Mich.-based Trinity Health's proposed $170 million hospital revenue bonds, series Michigan 2019A $130 million revenue bonds, series Ohio 2019A $925 million hospital revenue refunding bonds, series 2019-T bonds and $375 million taxable bonds. 

6. Moody's affirmed Poway, Calif.-based Palomar Health's "Ba1" revenue bond rating, affecting $597 million of rated debt.

7. Moody's upgraded the rating on Baltimore-based Mercy Health Services to "Baa1" from "Baa2," affecting about $404 million of debt. 

8. Moody's upgraded the rating on Tulare (Calif.) Healthcare District's outstanding general obligation bonds to "Ba2" from "Ba3."

S&P Global Ratings

9. S&P downgraded Yonkers, N.Y.-based St. John's Riverside Hospital's revenue debt to "CCC+" from "B-," due to the hospital's continuing operating losses. 

10. S&P affirmed its "BBB" long-term rating on Odessa, Texas-based Medical Center Hospital series 2010A and series 2010B hospital revenue and refunding bonds.

Fitch Ratings 

11. Fitch downgraded Toledo, Ohio-based ProMedica's issuer default rating to "BBB" from "BBB+," due to a weaker performance in its insurance division and recent changes to its Medicare funding. 

12. Fitch affirmed its "A-" issuer default rating on Concord Township, Ohio-based Lake Health. 

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