Moody's has placed Boston Medical Center's "Baa2" rating under review for a potential downgrade as it assesses the health system's recent acquisition of two Steward Health Care hospitals.
Four things to know:
1. Boston Medical Center took over operations of Boston-basedSt. Elizabeth's Medical Center and Brockton, Mass.-based Good Samaritan Medical Center on Oct. 1. The hospitals were acquired through Dallas-based Steward's bankruptcy proceedings.
2. Moody's said Oct. 2 that it is considering the direct and ongoing financial effects of the hospital acquisitions, as well as the effect on the health system's strategy.
3. Moody's said Boston Medical Center's rating will be confirmed if it believes that the system can successfully manage the new operating and financial risks "without significant impairment to its liquidity, debt, or operating performance."
4. A downgrade will be considered "under a range of circumstances," including a material negative change to Boston Medical Center's financial profile including ongoing financial losses at the new hospitals, additional debt or liquidity stress.