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U.S. Not-For-Profit Health Care Rating Actions, May 2020

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U.S. Not-For-Profit Health Care Rating Actions, May 2020

S&P Global Ratings' U.S. not-for-profit health care rating actions in May were primarily negative, with four downgrades and one rating placed on CreditWatch with negative implications. Three of the four downgrades were to organizations previously placed on CreditWatch with negative implications. The rating that was placed on CreditWatch was resolved during May and resulted in a downgrade. There were no upgrades during the month. In May, we maintained ratings and outlooks on 17 health care providers. There were no outlook revisions during May unaccompanied by a rating change.

The table below summarizes S&P Global Ratings' monthly bond rating actions for U.S. not-for-profit health care providers in May. We based the credit rating affirmations and credit rating actions on several factors within enterprise and financial profiles including business position, utilization, financial performance, debt levels, bond-issuance activity, physician relationships, and the external regulatory and reimbursement environment. Currently, this includes an assessment of COVID-19, recessionary pressures, and market volatility.

U.S. Not-For-Profit Health Care Rating Actions, May 2020
Hospitals State Rating Outlook Action Description

Beverly Community Hospital Association

CA BBB- Not meaningful Rating placed on CreditWatch negative Deterioration in operating performance and weak balance sheet

Beverly Community Hospital Association

CA BB Negative Rating lowered from 'BBB-'; removed from CreditWatch negative Deterioration in operating performance and weak balance sheet

CaroMont Health

NC AA- Stable Rating maintained Credit quality consistent with existing rating

Cheyenne Regional Medical Center

WY A Positive Rating maintained Credit quality consistent with existing rating

Children's Hospital of Alabama

AL AA- Stable Rating maintained Credit quality consistent with existing rating

Irving Hospital Authority*

TX A+ Stable Rating maintained Credit quality consistent with existing rating

Lawrence General Hospital

MA B Negative Rating lowered from 'BB'; removed from CreditWatch negative Potential debt coverage covenant violation in 2020, weakened liquidity position, and continued operating losses

Memorial Hospital of Sweetwater County

WY BB+ Negative Rating maintained Credit quality consistent with existing rating

Methodist Hospital of Southern California

CA BBB+ Stable Rating maintained Credit quality consistent with existing rating

Saint Francis Medical Center

MO A+ Stable Rating maintained Credit quality consistent with existing rating

St Peter's University Hospital

NJ BB+ Stable Rating maintained Credit quality consistent with existing rating
Health systems

Banner Health

AZ AA- Stable New sale; rating maintained Credit quality consistent with existing rating

Baptist Memorial Healthcare Corporation

TN BBB+ Negative New sale; rating maintained Credit quality consistent with existing rating

Baylor Scott & White Health

TX AA- Stable New sale; rating maintained Credit quality consistent with existing rating

Geisinger Health

PA AA- Stable Rating lowered from 'AA'; previous outlook negative Weak underlying financial performance including high losses at a member hospital

Kaiser Foundation Hospitals (Kaiser Permanente)

CA AA- Stable Rating maintained Credit quality consistent with existing rating

Lee Memorial Health System

FL A+ Stable Rating maintained Credit quality consistent with existing rating

Novant Health Inc.

NC AA- Stable Rating maintained Credit quality consistent with existing rating

OhioHealth

OH AA+ Stable New sale; rating maintained Credit quality consistent with existing rating

Ochsner Health System

LA A Stable Rating maintained Credit quality consistent with existing rating
Long-term care and human service providers

Elwyn Inc.

PA BB Negative Rating lowered from 'BBB-'; removed from CreditWatch negative Fiscal 2020 operations that will be much weaker than budget and continued near term liquidity uncertainty

Pickersgill Inc.

MD A Stable Rating maintained Credit quality consistent with existing rating
*Rating reflects linkage to Baylor Scott & White Health based on a lease agreement.

This report does not constitute a rating action.

Primary Credit Analyst:Alexander Nolan, Centennial (1) 303-721-4501;
alexander.nolan@spglobal.com
Secondary Contacts:Cynthia S Keller, New York (1) 212-438-2035;
cynthia.keller@spglobal.com
Suzie R Desai, Chicago (1) 312-233-7046;
suzie.desai@spglobal.com
Kenneth T Gacka, San Francisco (1) 415-371-5036;
kenneth.gacka@spglobal.com

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