CUSIP 368497JP9
- ISIN: US368497JP94
- Entity Name: Geisinger Authority
- Sector: Municipal Agency
- Announcement Date: 11-Feb-2019
- Effective Date: *****
- Issue Date: *****
- Maturity Date: 15-Feb-2019
- Country of Issuer: United States
- Region: N.Amer
- Issue Currency: United States of America Dollars
- CA Type: Rating Downgrade
- News: Moody`s Investors Service has downgraded Geisinger Health System, PA`s (Geisinger) outstanding bonds to Aa3 and Aa3/VMIG 1 from Aa2 and Aa2/VMIG 1, respectively. Concurrently, we are affirming the VMIG 1 outstanding. The outlook has been revised to stable from negative. The action affects approximately $1.2 billion of debt outstanding. RATINGS RATIONALE The downgrade of Geisinger to Aa3 from Aa2 follows underperformance relative to management`s anticipated margins in 2018, continuing a trend of modest margins, and our expectation that risks of rapidly executing on multiple large growth strategies as well as the operations of the health plan will continue to weigh on performance over the near term. Geisinger will continue to enjoy a leading market position, with a broad reach for tertiary and quaternary patients. This will be supported by strong brand recognition and continued expansion as a major consolidator in central Pennsylvania. Most recently Geisinger has announced the build out of two micro hospitals, in joint venture with partners Highmark & St. Luke`s University Health Network, and plans to strengthen its affiliation with Evangelical Community Hospital. Geisinger will also enjoy solid liquidity and relatively moderate financial leverage. Offsets include continuous capital investment at a time when cashflow is pressured, and markets which are increasingly competitive and fluid. The VMIG 1 reflects the credit quality of each bank as liquidity support provider under the applicable standby bond purchase agreement (SBPA). RATING OUTLOOK The stable outlook reflects our expectation that Geisinger will maintain good liquidity levels and modest leverage, continue to execute growth and cost savings strategies to mitigate reimbursement and competitive pressures, and sustain a leading market capture. FACTORS THAT COULD LEAD TO AN UPGRAD
- Description: Municipal Name: Geisinger Authority CUSIP: 368497JP9 Currency: USD Geisinger Authority announced today that the Moody s Investors Service has downgraded the ratings of the Series 2017A-2, Health System Revenue Bonds from Aa2 to Aa3.
- Bond Document: https://www.bondpdf.com/
- Latest Corporate Actions: https://www.CAalerts.com/credit-corporate-action/ISIN/US368497JP94
