Renton, Wash.-based Providence has been given an additional "A" rating for $585 million of new debt after a similar rating on the same bonds from Fitch on April 14.
The new April 17 rating is from S&P Global, which also identified a weaker operating environment for the 51-hospital system and a longer-term recovery. While Providence has strong market share and robust management plans to counter the various headwinds it is facing, any recovery is expected to be several years, resulting in a negative outlook.
"The negative outlook reflects our view of the steep operating losses that management must address over the next year to put the organization on a path to better cash flow and break-even margins," the S&P note said.
Providence has a recovery plan named Destination 2025, which S&P said it viewed favorably.
The rating on the new debt, which will be used to fund existing debt, follows three separate downgrades Providence has undergone in recent weeks.