Fitch Ratings has lowered the credit rating of Catholic Health Initiatives by three notches, citing the integrated health system’s weaker financial profile, while A.M. Best Co. downgraded CHI’s health insurance subsidiary.
CHI, a national system headquartered in Englewood, Colo., closed the books on the first nine months of its fiscal year with a net loss of $568.1 million. Health IT costs, investment losses and troubles with its health insurance company spearheaded the massive deficit. CHI’s credit rating from Fitch, which covers $6 billion of outstanding debt, now sits at BBB+, down from A+. Moody’s Investors Service and Standard & Poor’s each downgraded CHI’s bond ratings this year.