NEW YORK - Moody's Investors Service said it has affirmed Chester County Hospital, Pa.'s (CCH) Baa2 rating on the Series 1996 and 2001 fixed-rate bonds which were issued through the Chester County Health and Education Facilities Authority.
The rating outlook has been revised to negative from stable reflecting weakening of cash-to-debt and days cash on hand measures, thin operating performance of the entire consolidated entity (including certain subsidiaries of the Health System generating deficits and requiring ongoing transfers of support from the Foundation and Hospital), and capital needs which could require borrowing over the next two years.
Although Moody's believes that the hospital faces operational challenges, Moody's believes it has a fundamentally healthy market position and has demonstrated good longer-term growth of patient volumes. An ability to strengthen consolidated operating performance and grow cash and investments could help stabilize the hospital's rating outlook.
