Meadowbrook, Pa.-based Redeemer Health saw its credit rating downgraded to "BB" by S&P Global, according to an Aug. 18 Philadelphia Inquirer report.
The system, which also saw its outlook revised to negative June 14 by Fitch Ratings, has rapidly "declining operating margins," according to the report. Management is expecting a $45 million operating loss for the year ending June 30.
"This loss is three times larger than what had been originally budgeted and would have been worse absent receipt of approximately $14 million of relief funding," S&P said, according to the report.
Redeemer Health told the Inquirer that it was disappointed in the downgrade, arguing the local community continues to be in much need of the system's services.
The system continues to look for a "strategic partner" to help it recover, the report said.