PITTSBURGH — Moody’s has downgraded UPMC’s credit rating following the health system’s recent expansion in central Pennsylvania.
The Tribune-Review reports the credit rating on UPMC’s $2.9 billion debt has shifted from “very low credit risk” to “low credit risk.” Moody’s cited the risks in expansion.
UPMC acquired the Harrisburg-based hospital group PinnacleHealth, which owns Carlisle Regional Medical Center, in September following its acquisition of UPMC Susquehanna. According to a Moody’s summary, the credit rating downgrade reflects concerns about competitive challenges and struggling economies in local service areas.
UPMC spokesman Paul Wood says rating agencies value stability instead of the kind of expansion being pursued by UPMC.
UPMC has reported an operating income of $240 million on revenues of $14 billion for the 2017 fiscal year.