Moody's Investors Service downgraded New Bedford, Mass.-based Southcoast Health System's bonds to "Baa1" from "A3," affecting $148 million of rated debt.
The downgrade is a result of the health system's weakened operating performance and constrained financial flexibility. Moody's also acknowledged Southcoast Health System's dominant market position, adequate liquidity measures and limited debt structure risks.
The outlook is stable, reflecting Moody's expectation that Southcoast Health's operating performance will stabilize in fiscal year 2018.