Kettering Lowered to A3

Moody’s Investors Service downgraded to A3 from A2 Kettering Health Network’s $408 million of outstanding bonds.

The downgrade comes as the eight-hospital system is set to privately place $93 million of bonds with Bank of America Merrill Lynch, according to Moody’s. The outlook was revised to stable from negative at the lower rating.

The Dayton, Ohio-based system enjoys a strong market position and a good history of profitable operations, Moody’s said.

However, its operating performance declined in 2011 and it faces several challenges, including competition, thin debt coverage ratios, and significant capital plans, Moody’s said in a downgrade report put out this week.

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Healthcare industry Ohio
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