Moody's Investors Service has downgraded Jefferson Hills, Pa.-based Jefferson Regional Medical Center's bond rating to "Baa3" from "Baa2," affecting approximately $105 million of outstanding debt.
The downgrade follows JRMC's deep operating deficit in fiscal year 2014 reflecting operational pressures and transition costs with the medical center's affiliation with Highmark, according to Moody's.
JRMC has a negative outlook, which reflects "the severity of the operational challenge" and Moody's expectation "that an inability to markedly improve operating performance in FY 2015 will lead to pressure on the rating."
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