...April 18, 2022 CHICAGO (S&P Global Ratings) April 18, 2022--S&P Global Ratings lowered its long-term rating to 'A+' from '##-' on Providence St. Joseph Health (PSJH), Wash.'s various taxable fixed-rate bonds and on various issuers' tax-exempt bonds issued for PSJH. The outlook is negative. "The rating action reflects a weaker financial profile following the disaffiliation of Hoag at the same time that margins remain pressured as a result of COVID-related challenges," said S&P Global Ratings credit analyst Suzie Desai. The negative outlook reflects our view of PSJH's steep losses in 2021, particularly compared with the experience of similarly sized and rated peers, coupled with certain service area characteristics that we believe could create challenges for earnings to rebound to a level consistent with the rating. In addition, PSJH's pro forma balance sheet has less financial flexibility to absorb persistently sizeable losses, even at the lower rating. We view environmental risk as elevated...
