Moody's Investors Service downgraded Harrisburg, Pa.-based Pinnacle Health System's rating to "A3" from "A2" on debt issued through Dauphine County General Authority, affecting $287 million.
The downgrade is a result of the upcoming risk factors for the health system as it acquires four for-profit hospitals and increases its pro forma debt burden. Moody's also acknowledged Pinnacle Health's historically favorable financial performance and innovative strategic initiatives.
The outlook was revised to developing from stable, reflecting Moody's expectation that integrating four distinct hospitals into the system will pose a challenge along with the uncertainty surrounding the pro forma debt.