Fitch Ratings downgraded Tewksbury, Mass.-based based Covenant Health's bond rating to "BBB+" from "A-."
Concurrently, Fitch assigned its "BBB+" issuer default rating to Covenant Health.
The downgrade and assignment are a result of several factors, including Covenant Health's weak operating margins, lower inpatient market share and ongoing EHR implementation. Fitch favorably viewed the health system's stable payer mix and strong adjusted leverage metrics.
The outlook is stable.