Moody's Investor Service has downgraded Pittsburgh-based West Penn Allegheny Health Systems' bond rating from B1 to Ba3, affecting $758 million Series 2007 fixed-rate bonds, according to a report by the Pittsburgh Post-Gazette.
Moody's cited volume declines, a risky downsizing strategy and pension obligations as key reasons for the downgrade. West Penn Allegheny admissions dropped 7.5 percent in the first nine months of its fiscal year, and Moody's does not expect the health system to "come close" to meeting its FY budget, according to the report.
The downgrade comes just days after West Penn Allegheny released its third-quarter earnings.
Read the Pittsburgh Post-Gazette's report on the West Penn Allegheny bond downgrade.
Moody's cited volume declines, a risky downsizing strategy and pension obligations as key reasons for the downgrade. West Penn Allegheny admissions dropped 7.5 percent in the first nine months of its fiscal year, and Moody's does not expect the health system to "come close" to meeting its FY budget, according to the report.
The downgrade comes just days after West Penn Allegheny released its third-quarter earnings.
Read the Pittsburgh Post-Gazette's report on the West Penn Allegheny bond downgrade.