NEW YORK - Moody's Investors Service has downgraded to Ba2 from Baa3 the rating assigned to St. Vincent Hospital, Pa., d/b/a St. Vincent Health Center (SVHC), the primary operating entity of St. Vincent Health System (SVHS). The ratings are removed from Watchlist where they were placed on February 29, 2012; the rating outlook is negative.
The downgrade to Ba2 from Baa3 is driven by continued weakening of SVHS's financial profile through unaudited 9 months fiscal year (FY) 2012, with interim statements showing a marked decline in cash and material operating losses driven by declining marketshare and admissions.
The assignment of the negative rating outlook reflects Moody's belief that the decline in performance and increased competition continue to place significant pressures on the credit and that successful execution of turnaround strategies and projected outcomes leave little room for missteps.
