Moody's Investors Service affirmed its "A1" rating on $223 million of Appleton, Wis.-based ThedaCare's debt. Concurrently, the credit agency revised the healthcare provider's outlook to negative from stable.
The rating affirmation is a result of ThedaCare's leading market position, solid balance sheet and conservative debt structure. Moody's negatively viewed the health system's weak operating performance over the last several years as well as its significant budget miss in fiscal year 2017 that worsened debt service coverage ratios.
The negative outlook is reflective of the additional operation risks ThedaCare will encounter as it enters into a period of increased capital spending.