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UPMC receives credit downgrade after midstate expansion

Written by The Associated Press | Sep 8, 2017 9:25 AM
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The signs marking the offices for the University of Pittsburgh Medical Center, UPMC, are seen on top of the U.S. Steel tower on Monday, April 3, 2017, in Pittsburgh. (AP Photo/Keith Srakocic)

(Pittsburgh) -- Moody's has downgraded UPMC's credit rating following the health system's recent expansion into the midstate.

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 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.

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