Boston-based Tufts Medicine was downgraded from “BBB+” to “BBB” both on its default rating and on various bonds as the health system continues to endure significant financial challenges, Fitch Ratings said Feb. 28. The rating outlook remains negative.
Tufts Medicine, which endured what Fitch called “outsized operating losses” in fiscal 2022, violated its debt coverage agreement, which has involved hiring a consultant, Fitch said. Such operating losses totaled $398.6 million in 2022.
While operating results are expected to improve over time, Fitch added, the agency is assuming a loss in fiscal 2023. Days of cash on hand totaled 82.7 at the end of fiscal 2022 compared with 173.2 days in fiscal 2021.
Tufts is aiming to save $22 million annually by eliminating 240 positions, according to a Jan. 24 report.