Moody's Investors Service has downgraded Atlanta-based WellStar Health System's underlying bond rating to "A2" from "Aa3," affecting approximately $448 million of outstanding revenue certificates.
The downgrade is based on several factors, including WellStar's expected and debt-financed acquisition of five acute care hospitals and merger with a nonprofit hospital, which will materially increase WellStar's debt load.
The outlook is stable, reflecting Moody's Investors Service's expectation that WellStar will continue producing favorable financial performance.