Holy Redeemer Health System, PA Revenue Bond Rating Lowered To ?BB? From ?BB+? On Rapidly Declining Operating Margins

CHICAGO (S&P Global Ratings) Aug. 11, 2023--S&P Global Ratings lowered its long-term rating to 'BB' from 'BB+' on the Montgomery County Higher Education&Health Authority, Pa.'s revenue bonds, issued for Holy Redeemer Health System (d/b/a Redeemer Health [RH]). The outlook is negative. "The downgrade reflects Holy Redeemer's rapidly declining operating margins, particularly in the first nine months of fiscal 2023, coupled with a trend of diminishing reserves that we believe no longer offsets the magnitude of the losses," said S&P Global Ratings credit analyst Marc Arcas. Securing the bonds is a gross receipts pledge from the obligated group and a mortgage on Holy Redeemer Hospital. The obligated group consists of RH (Holy Redeemer Hospital, St. Joseph Manor, Redeemer Lafayette,

...August 11, 2023 CHICAGO (S&P Global Ratings) Aug. 11, 2023--S&P Global Ratings lowered its long-term rating to '##' from '##+' on the Montgomery County Higher Education & Health Authority, Pa.'s revenue bonds, issued for Holy Redeemer Health System (d/b/a Redeemer Health [RH]). The outlook is negative. "The downgrade reflects Holy Redeemer's rapidly declining operating margins, particularly in the first nine months of fiscal 2023, coupled with a trend of diminishing reserves that we believe no longer offsets the magnitude of the losses," said S&P Global Ratings credit analyst Marc Arcas. Securing the bonds is a gross receipts pledge from the obligated group and a mortgage on Holy Redeemer Hospital. The obligated group consists of RH (Holy Redeemer Hospital, St. Joseph Manor, Redeemer Lafayette, Redeemer Health Home Care & Hospice--Pennsylvania, and Holy Redeemer Support at Home) and Holy Redeemer Physician and Ambulatory Services. The rating and negative outlook reflect our view of RH's...

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