Moody's Investors Service downgraded Des Moines, Iowa-based UnityPoint Health's rating from "Aa3" to "A1," affecting $634 million of outstanding debt.
The downgrade is a result of several factors, including the health system's weakened operating performance, modest cash flow margins and deviation from its budget in fiscal year 2016. Moody's also acknowledged the UnityPoint's strong market position, large size, stable liquidity metrics and sound debt coverage.
The outlook is stable, reflecting Moody's expectation that UnityPoint's operating performance will remain weaker than normal, but strong enough to support its debt load.