Springfield, Mass.-based Baystate Health had ratings downgraded on specific bonds related to its flagship medical center, S&P Global said April 12.
While ratings were affirmed on other debt, those on others specific to the 780-bed Baystate Medical Center were downgraded to "A" from "A+" as the system's operating challenges continue into 2023, the agency said.
Baystate Health reported an operating loss of $185 million for the fiscal year ended Sept. 30, 2022. Its operating income was $23.1 million for the three months ending Dec. 31, below the median of $82.7 million for similarly "A" rated health systems in 2021, S&P said. Operating income for fiscal 2021 was a loss of $5.2 million.
The rating decision from S&P follows that of an affirmation of an "A+" grade from Fitch on March 10.
Both rating agencies point to Baystate's strong market share in Western Massachusetts as a key to maintaining its rating. The outlook is stable, S&P said.
The system also operates three local community hospitals (68-bed Baystate Wing Hospital in Palmer, 85-bed Baystate Noble Hospital in Westfield, and 89-bed Baystate Franklin Medical Center in Greenfield).