S&P Global Ratings' U.S. not-for-profit health care rating actions in May were primarily negative, with four downgrades and one rating placed on CreditWatch with negative implications. Three of the four downgrades were to organizations previously placed on CreditWatch with negative implications. The rating that was placed on CreditWatch was resolved during May and resulted in a downgrade. There were no upgrades during the month. In May, we maintained ratings and outlooks on 17 health care providers. There were no outlook revisions during May unaccompanied by a rating change.
The table below summarizes S&P Global Ratings' monthly bond rating actions for U.S. not-for-profit health care providers in May. We based the credit rating affirmations and credit rating actions on several factors within enterprise and financial profiles including business position, utilization, financial performance, debt levels, bond-issuance activity, physician relationships, and the external regulatory and reimbursement environment. Currently, this includes an assessment of COVID-19, recessionary pressures, and market volatility.
U.S. Not-For-Profit Health Care Rating Actions, May 2020 | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Hospitals | State | Rating | Outlook | Action | Description | |||||||
Beverly Community Hospital Association |
CA | BBB- | Not meaningful | Rating placed on CreditWatch negative | Deterioration in operating performance and weak balance sheet | |||||||
Beverly Community Hospital Association |
CA | BB | Negative | Rating lowered from 'BBB-'; removed from CreditWatch negative | Deterioration in operating performance and weak balance sheet | |||||||
CaroMont Health |
NC | AA- | Stable | Rating maintained | Credit quality consistent with existing rating | |||||||
Cheyenne Regional Medical Center |
WY | A | Positive | Rating maintained | Credit quality consistent with existing rating | |||||||
Children's Hospital of Alabama |
AL | AA- | Stable | Rating maintained | Credit quality consistent with existing rating | |||||||
Irving Hospital Authority* |
TX | A+ | Stable | Rating maintained | Credit quality consistent with existing rating | |||||||
Lawrence General Hospital |
MA | B | Negative | Rating lowered from 'BB'; removed from CreditWatch negative | Potential debt coverage covenant violation in 2020, weakened liquidity position, and continued operating losses | |||||||
Memorial Hospital of Sweetwater County |
WY | BB+ | Negative | Rating maintained | Credit quality consistent with existing rating | |||||||
Methodist Hospital of Southern California |
CA | BBB+ | Stable | Rating maintained | Credit quality consistent with existing rating | |||||||
Saint Francis Medical Center |
MO | A+ | Stable | Rating maintained | Credit quality consistent with existing rating | |||||||
St Peter's University Hospital |
NJ | BB+ | Stable | Rating maintained | Credit quality consistent with existing rating | |||||||
Health systems | ||||||||||||
Banner Health |
AZ | AA- | Stable | New sale; rating maintained | Credit quality consistent with existing rating | |||||||
Baptist Memorial Healthcare Corporation |
TN | BBB+ | Negative | New sale; rating maintained | Credit quality consistent with existing rating | |||||||
Baylor Scott & White Health |
TX | AA- | Stable | New sale; rating maintained | Credit quality consistent with existing rating | |||||||
Geisinger Health |
PA | AA- | Stable | Rating lowered from 'AA'; previous outlook negative | Weak underlying financial performance including high losses at a member hospital | |||||||
Kaiser Foundation Hospitals (Kaiser Permanente) |
CA | AA- | Stable | Rating maintained | Credit quality consistent with existing rating | |||||||
Lee Memorial Health System |
FL | A+ | Stable | Rating maintained | Credit quality consistent with existing rating | |||||||
Novant Health Inc. |
NC | AA- | Stable | Rating maintained | Credit quality consistent with existing rating | |||||||
OhioHealth |
OH | AA+ | Stable | New sale; rating maintained | Credit quality consistent with existing rating | |||||||
Ochsner Health System |
LA | A | Stable | Rating maintained | Credit quality consistent with existing rating | |||||||
Long-term care and human service providers | ||||||||||||
Elwyn Inc. |
PA | BB | Negative | Rating lowered from 'BBB-'; removed from CreditWatch negative | Fiscal 2020 operations that will be much weaker than budget and continued near term liquidity uncertainty | |||||||
Pickersgill Inc. |
MD | A | Stable | Rating maintained | Credit quality consistent with existing rating | |||||||
*Rating reflects linkage to Baylor Scott & White Health based on a lease agreement. |
This report does not constitute a rating action.
Primary Credit Analyst: | Alexander Nolan, Centennial (1) 303-721-4501; alexander.nolan@spglobal.com |
Secondary Contacts: | Cynthia S Keller, New York (1) 212-438-2035; cynthia.keller@spglobal.com |
Suzie R Desai, Chicago (1) 312-233-7046; suzie.desai@spglobal.com | |
Kenneth T Gacka, San Francisco (1) 415-371-5036; kenneth.gacka@spglobal.com |
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