Cincinnati-based Bon Secours Mercy Health had its long-term bond rating downgraded from "A1" to "A2," Moody's said Oct. 5.
The outlook was revised to stable from negative.
"The downgrade to 'A2' reflects a prolonged period of modest performance combined with high capital spending, which will result in a further decline in cash and continuation of high leverage," Moody's said. The 47-hospital system had $4.9 billion of outstanding debt at the end of fiscal 2022, the research note said.
The system is benefiting, however, from improving margins and "solid" days' cash on hand levels, remaining above 180 days.
Bon Secours Mercy Health, which operates across seven states and Ireland, generated over $11 billion in revenue in fiscal 2022.