Moody’s has downgraded Baylor Health Care System’s credit from Aa2 to Aa3 on its 2013 series bonds. The rating service cited the systems relative cash position compared to others rated Aa2 and a heavy reliance on joint ventures for cash-flow margins.
However, the rating service did upgrade Baylor’s outlook from negative to stable at the lower rating. It cited the strength of the Dallas-Fort Worth market, Baylor’s decade-long string of double-digit operating margins and investment in improving quality outcomes.
