Doylestown Health gets credit rating upgrade from Moody’s
The ratings upgrade for Doylestown comes as the University of Pennsylvania Health System works on completing its acquisition of the Bucks County nonprofit.
Moody’s Ratings upgraded Doylestown Health’s credit rating Friday to B2 from B3 and boosted its outlook on the Bucks County nonprofit to positive from stable. The new credit rating is still very low, indicating that Doylestown’s financial condition remains challenged.
The upgrade reflected improvement in the amount of cash Doylestown has on hand relative to expenses and debt, as well as improved operating results, Moody’s said. It does not take into account the health system’s pending acquisition by the University of Pennsylvania Health System.
Moody’s action followed a similar move by Standard & Poor’s in August.
Doylestown significantly trimmed its operating loss in the year ended June 30. It reported a loss of $5.9 million, a sharp reduction from $19.2 million the year before. Its revenue climbed to $446.8 million in fiscal 2024 from $417.9 million in fiscal 2023.
If Penn completes its acquisition of Doylestown by early next year as expected, Grand View in Bucks County and Redeemer Health in Montgomery County would be the Philadelphia region’s only remaining health systems that operate just one hospital. Grand View, however, is in talks about a possible acquisition by St. Luke’s University Health Network.