Moody's Investors Service said it has downgraded to Ba2 from Ba1 the ratings of Temple University Health System.

The rating outlook is negative at the lower rating level.

The rating action affects approximately $525 million of rated debt issued through the Hospitals and Higher Education Facilities Authority of Philadelphia.

The downgrade to Ba2 rating from Ba1 is based on the expectation that operating losses will be significant in FY 2013, reflecting a material negative variance from budgeted expectations provided by management.

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