New Jersey Health Care Facilities Financing Authority St. Joseph's Healthcare System; Hospital; System

S&P Global Ratings revised its outlook to stable from positive and affirmed its 'BBB-' rating on the New Jersey Health Care Facilities Financing Authority's series 2016 and 2008 bonds issued for St. Joseph's Healthcare System (SJHS). At the same time, S&P Global Ratings assigned its 'BBB-' rating and stable outlook to SJHS' series 2017 fixed-rate taxable bonds, the proceeds of which will fund the system's defined benefit pension plan. The outlook revision reflects this additional debt and recently softer earnings. Furthermore, the revision reflects our view of likely continued pressure on finances following information technology upgrades and some compression of liquidity over the outlook period. We assess the enterprise profile as strong, with SJHS serving a large population and maintaining

...S&P Global Ratings revised its outlook to stable from positive and affirmed its '###-' rating on the New Jersey Health Care Facilities Financing Authority's series 2016 and 2008 bonds issued for St. Joseph's Healthcare System (SJHS). At the same time, S&P Global Ratings assigned its '###-' rating and stable outlook to SJHS' series 2017 fixed-rate taxable bonds, the proceeds of which will fund the system's defined benefit pension plan. The outlook revision reflects this additional debt and recently softer earnings. Furthermore, the revision reflects our view of likely continued pressure on finances following information technology upgrades and some compression of liquidity over the outlook period. We assess the enterprise profile as strong, with SJHS serving a large population and maintaining a dominant market share in a competitive area. We assess the financial profile as vulnerable, with modest operating margins, although debt service coverage has remained solid in recent years; near-term...

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