Moody's Investors Service downgraded Philadelphia- based Albert Einstein Health Network's bond and issuer rating to "Baa3" from "Baa2," affecting $447 million of outstanding debt.
The downgrade is a result of several factors, including the health system's negative operating performance in fiscal year 2017, declining liquidity measures and uncertainty in state funding status. Moody's also acknowledged the health system's planned improvement strategies to bolster liquidity metrics.
The outlook is revised to negative from stable, reflecting the health system's severe operating loss and declining liquidity in fiscal year 2017.