Moody’s Investors Service has affirmed its A2 rating on Kettering Health Network’s $41 million of bonds but revised its outlook to negative from stable, warning that planned debt sales could pressure the system’s balance sheet.

The negative outlook reflects Moody’s expectation that Kettering will either issue debt or use cash to finance capital projects, which could pressure its rating if the system fails to meet management’s cash-flow projections, analyst Mark Pascaris wrote in a recent report.

The seven-hospital system located around Dayton plans to issue $155 million of new-money debt later this year.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.