Moody's Investors Service has downgraded Valhalla, N.Y.-based Westchester Medical Center and Charity Health System's rating to "Baa2" from "Baa1," affecting $500 million of outstanding debt.
The rating downgrade is based on several factors, including a sizable and unexpected increase in debt and weak liquidity.
The outlook is stable, reflecting Moody's expectation that early improvement at Charity Health System will continue.
Moody's also assigned a "Baa2" rating to WestchesterMedicalCenter's proposed series 2016 fixed rate bonds, affecting $284 million.