Moody's Investors Service has affirmed the "Ba2" rating on Syracuse, N.Y.-based St. Joseph's HospitalHealthCenter's bonds and revised the hospital's outlook to stable from negative.
Here are four things to know about the rating and outlook revision.
1. The rating action affects approximately $204 million of outstanding debt.
2. The rating affirmation on the bonds was based on a number of factors, including St. Joseph's position as a leading healthcare provider in the competitive Syracuse service area.
3. The hospital does face some challenges, which were considered for the rating affirmation, such as considerable operating challenges with very weak margins and liquidity and high leverage.
4. The revision of St. Joseph's outlook to stable "reflects expected integration benefits from St. Joseph's status as a fully owned member of [Livonia, Mich.-based] Trinity Health, limited capital needs, and reduced liquidity risks following completion of an IT installation, patient tower and financing last year," according to Moody's.