S&P Global Ratings lowered its long-term rating on the Montgomery County Higher Education&Health Authority, Pa.'s revenue bonds, issued for Holy Redeemer Health System, (d/b/a Redeemer Health [RH]) to 'BB+' from 'BBB-'. The outlook is stable. The downgrade reflects Holy Redeemer's persistent operating losses that have dramatically accelerated year to date and limited balance-sheet growth even with recent limited investment in capital and periods of strong investment returns. 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, Holy Redeemer St. Joseph Manor, Holy Redeemer Lafayette, Holy Redeemer Home Care--Pennsylvania, and Holy Redeemer Support at Home) and Holy Redeemer Physician Services.
