Fitch Ratings revised its outlook to stable from negative on $130 million of Covenant Health System revenue bonds in Massachusetts and New Hampshire.

Fitch, while affirming its A rating, cited the following revenue bonds: New Hampshire Health and Education Facilities Authority, Series 2012, $12.3 million and Series 2004, $18.5 million; Massachusetts Development Finance Agency, Series 2012, $26.9 million; and Massachusetts Health and Educational Facilities Authority, $72.7 million, Series 2007, A and B.

The rating agency cited a $3.6 million operating loss in fiscal 2014, ending March 31.

"The system's negative 2.5% operating margin and 3.6% operating Ebitda margin through the three-month interim period compared unfavorably against Fitch's A category medians of 3.3% and 10.7%, respectively, which Fitch views negatively," it said in a statement.

Additionally, according to Fitch, management expects more pressure as the system works to implement the federal Affordable Care Act.

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