Danbury, Conn.-based Nuvance Health was downgraded to a "Baa3" rating amid weakened operating performance and reduced liquidity, Moody's said in a July 20 report.
While the seven-hospital system, which serves Eastern New York as well as Western Connecticut, has a strong market position and its management is implementing cost-cutting and strategic growth initiatives, it will face a number of cash flow issues going forward and the outlook is negative, Moody's said.
"The next several quarters will be pivotal for Nuvance," Moody's said in the report. "Greater than expected cash losses or the failure to demonstrate quarter-over-quarter traction on margin improvement will pressure the rating further."
In April, Nuvance Health, which had $2.6 billion in revenue in 2022, said it will close a 100-bed rehabilitation facility in New York, laying off 102 employees.