State College, Pa.-based Mount Nittany Medical Center saw its credit rating downgraded to "A+" amid concern about its capital expenditure plans, Fitch Ratings said Jan. 31.
While the 260-bed acute care hospital maintains a relatively strong financial profile, the $605 million spending plan will likely cause some stress on the hospital, Fitch said. The new rating, downgraded from "AA-," applies both to overall debt and specific bonds.
The capital plans include the construction of a $350 million patient tower and a $91 million medical office building as well as various other improvements, Fitch said. The new tower will include 168 private patient rooms.
The medical center is part of Mount Nittany Health, which also includes a physician group employing 122 physicians, the Foundation for Mount Nittany Medical Center and Centre County Children's Advocacy Center.
The healthcare system had total revenues of nearly $480 million in fiscal 2022, Fitch said.