Penn Highlands Healthcare, PA Bond Rating Lowered To 'BBB' And Placed On CreditWatch Negative On Weaker Reserves

ENGLEWOOD (S&P Global Ratings) July 12, 2024--S&P Global Ratings lowered its long-term rating on the DuBois Hospital Authority, Pa.'s series 2021, 2020, and 2018 hospital revenue bonds, issued for Penn Highlands Healthcare (PHH), to 'BBB' from 'A-' and placed the rating on CreditWatch with negative implications. "The lower rating reflects continually weakening unrestricted reserves and ongoing negative operating performance through the nine-month interim period ended March 31, 2024," said S&P Global Ratings credit analyst Blake Fundingsland. The CreditWatch placement reflects there is at least a one-in-two likelihood of a further negative rating action pending receipt of the June 30, 2023, audited financial statements that have not yet been finalized. PHH changed auditing firms and we had expected a final audit

...July 12, 2024 ENGLEWOOD (S&P Global Ratings) July 12, 2024--S&P Global Ratings lowered its long-term rating on the DuBois Hospital Authority, Pa.'s series 2021, 2020, and 2018 hospital revenue bonds, issued for Penn Highlands Healthcare (PHH), to '###' from 'A-' and placed the rating on CreditWatch with negative implications. "The lower rating reflects continually weakening unrestricted reserves and ongoing negative operating performance through the nine-month interim period ended March 31, 2024," said S&P Global Ratings credit analyst Blake Fundingsland. The CreditWatch placement reflects there is at least a one-in-two likelihood of a further negative rating action pending receipt of the June 30, 2023, audited financial statements that have not yet been finalized. PHH changed auditing firms and we had expected a final audit within 90 days. The longer the auditing process takes, the more uncertainty we have in the internal statements that we are using for this review. Furthermore, it is...

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