Moody's Investors Service downgraded Concord Township, Ohio-based Lake Health's rating to "Baa1" from "A3," affecting $76 million of outstanding debt.
The downgrade is a result of several factors, including the health system's lower than anticipated margins, high balance sheet leverage, payer pressures and higher labor costs. Moody's also acknowledged Lake Health's strong liquidity metrics and leading market position.
The outlook was revised to stable from negative at the lower rating, reflecting Moody's expectation that Lake Health will improve operating performance and maintain its favorable liquidity metrics.