Moody's Investors Service downgraded Oklahoma City-based Integris Health one notch, to 'A1' from "Aa3." The action affects $226 million of outstanding debt.
The downgrade is a result of several factors, including its weaker operating cash flow margins, increase in debt to fund a construction project and its soon-to-be finalized acquisition of Oklahoma City-based AllianceHealth Deaconess, a 291-bed hospital operated by Franklin, Tenn.-based Community Health Systems. Moody's anticipates the acquisition will place pressure on Integris' near-term operations.
The outlook is stable at the lower rating, reflecting Moody's expectation that Integris' operating results will improve and stabilize after executing its financial recovery initiatives.
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