Moody's Investors Service affirmed its "Ba1" rating on Brewer-based Eastern Maine Healthcare System, affecting $392 million of debt.
The affirmation is a result of the health system's significant turnaround plan, better discipline around budgeting and constrained capital spending, which is expected to improve margins and liquidity. In addition, Moody's acknowledged the healthcare system’s minimal debt structure risks, leading market share and completion of an expansion project at its flagship facility.
The outlook remains negative, reflecting the health system's weak margins and a significant budget shortfall in fiscal year 2017. Moody's also unfavorably viewed the system’s ongoing operating challenges, including increased labor and IT costs.