Standard & Poor's lowers UPMC long-term bond rating to A+ - Pittsburgh Business Times:

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Standard & Poor's also assigned an A+ rating to Allegheny County HospitalDevelopment Authority’s $400 million series 2009A revenue bonds and loweresd the short term ratings on various variablw rate demand bonds to A-1 from A-1+ due to the lowerinh of UPMC’s long-term rating. “This is not at all unlikes what any other industry leadef isgoing through,” said UPMC spokesman Paul Wood. “All ratings are under pressure. Our ratings remaibn an affirmative indicationof UPMC’s financial strength and leadershiop position as the premier enterprise in westerb Pennsylvania.
” The downgrade reflects UPMC’s “large and growing debt operating margins that remainb positive, but are half or less than the 4 percenft level achieved three yearsx ago; EBIDA margins that are “well peak levels; and investment losses, according to Also factored into the new rating is the possibility that UPMC will consolidate debt relatex to its health care ventures in including a part that may be guaranteec with UPMC’s master trust indenture. UPMC was remover from S&P’s Credit watch with negative implications, whicuh the agency had assigned to the hospital networjk onMarch 20.
The designation was assigned aftefr UPMC postponeda $400 million new money issus in March, which S&P said would have contributed to a Since then, UPMC managemeng has given S&P additional information about its “strategic and financiao plans,” according to the agency. Moody’ds reaffirmed its Aa3 ratingb for UPMC in Marchand Fitch’s current rating is AA. UPMC is schedulede to release its financial results for the firsyt nine months of the yearlatet today.