Radnor Township, Pa.-based Main Line Health was downgraded by Fitch Ratings in relation to $594 million of bonds it holds amid what the agency termed "significant operating losses" in fiscal year 2022, ending June 30.
While downgrading that specific rating from "AA" to "AA-," however, Fitch described the healthcare group's outlook as stable and said that it will benefit from a good market position in a favorable service area with strong market share.
Fitch described "continued expense challenges" facing the hospital group over the next two years as part of its decision to downgrade the debt rating. The bonds were issued on behalf of Main Line Health by Chester County Health & Educational Facilities Authority.
Main Line Health operates four acute care hospitals in the Philadelphia area, including Paoli Hospital, which was named among the 148 best hospitals in the country.
"Fitch believes that Main Line's sound liquidity and ability to curtail capital spending during this period of stress, given its history of very healthy capital investment, provides it with ample flexibility as it works to stabilize operations," the Fitch report concluded.