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Fitch downgrades HonorHealth rating as nonprofit system pursues $600M expansion

Latest headlines from ABC15 Arizona in Phoenix
HonorHealth Deer Valley
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PHOENIX — On a high growth path, HonorHealth recently lost its A+ Fitch Ratings status, along with a negative outlook from the ratings company.

"The downgrade reflects higher-than-expected strategic spending and weaker operating results during integration of acquired assets which in Fitch's view have reduced financial flexibility," according to the Fitch Ratings report released on March 18.

HonorHealth's Issuer Default Rating is now an A. Fitch also downgraded the long-term health care revenue bonds issued by the Industrial Development Authority of the County of Maricopa on behalf of HonorHealth to an A from an A+.

But HonorHealth CEO Todd LaPorte is not concerned, saying the Scottsdale-based nonprofit health system is on a "transformational" mission.

Read more of this story from the Business Journal.