Yale New Haven (Conn.) Health saw its default rating and that on a series of bonds downgraded one notch to "A+" from "AA-" amid continued operating woes, Fitch said June 28.
Not only have there been three straight years of such challenges, but the operating environment continues to cast a pall into the second quarter of the current fiscal year, Fitch said.
The new rating and stable outlook reflect the opinion that the five-hospital system has sufficient liquidity to carry out large-scale capital needs, including the $840 million construction of a 505,000-square-foot inpatient tower, the note said. Most of the spending on the project is expected between 2024 and 2026.
The rating does not reflect the possible acquisition of three Prospect Medical Holdings hospitals by Yale New Haven, the research note added.