Tacoma, Wash.-based MultiCare Health System had ratings on a series of bonds downgraded to "A" from "A+" on Oct. 5 amid balance sheet deterioration, S&P Global said.
The outlook at the new rating level is stable.
"The lower rating also reflects our view of the notable operating losses in fiscal 2022 and through 2023 and our expectation that inflationary and labor headwinds may slow underlying operating improvement," according to the S&P note.
It was the second such revision in a week for the 12-hospital system after Fitch revised its outlook to negative Sept. 29.
MultiCare recorded an operating loss of just over $145 million for the first half of the year.