Moody's Investors Service has downgraded UMass Memorial Health Care's rating to Baa3 from Baa1. The rating remains under review for downgrade. The downgrade reflects multi-year deterioration of operating performance and debt service coverage that accelerated in FY 2013, timing variability in receipt of supplemental Medicaid funding resulting in a period of thinner liquidity, and forecasted breach of bank debt financial covenants during FY 2014 which could result in acceleration of debt. During the review period we will focus on revisions to debt financial covenants as well as the system's ability to improve quarterly operating performance through expense containment measures as well as growth of revenue.

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