Standard & Poor's has downgraded the rating assigned to Englewood, Colo.-based Catholic Health Initiatives' $7 billion of outstanding debt to "A" from "A+" and maintained the system's negative outlook.
The rating downgrade was based on the 105-hospital system's "large and unexpected operating loss," according to the report. Although S&P expected CHI's operating performance to improve in fiscal 2014, its operating performance worsened, according to the report. CHI reported a $14 million operating loss for fiscal year 2014.
Although CHI has plans to turn around its operations, S&P analysts don't expect it to be enough for the system to avoid losses for fiscal 2015, according to the report.
In recently released financial statements, the system reported a $134.7 million operating loss on $3.2 billion in revenue for the first quarter of its fiscal 2015.
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