S&P Global Ratings Revises Credit Outlook to Stable for Baystate Health

SPRINGFIELD, MA – S&P Global Ratings revised its outlook for Baystate Health to stable from negative and affirmed our 'A' long-term rating on the Massachusetts Development Finance Agency's series 2014N revenue bonds and our ‘A’ underlying rating (SPUR) on the series 2009J-1 and 2009J-2 bonds. S&P ratings are forward-looking opinions about an organization’s financial strength and risks. S&P, one of the “Big Three” credit rating agencies, uses a scale of AAA to D. 

An ‘A’ rating reflects our strong capacity to meet ongoing financial commitments. The ‘A’ rating reflects Baystate's market leadership in a broad region of western Massachusetts, with diversified revenue streams and integrated operations; improved operating performance over the past nine months and efforts to create a path to sustained; leverage and unrestricted reserves relative to long-term debt in line with rating expectations; and removal to unfunded liability risk with the termination of the defined-benefit plan.

S&P’s outlook revision to stable reflects Baystate’s operating performance improvement that is expected to be sustained under the leadership of a new management team. The revision is also supported by healthy unrestricted reserves-to-debt and leverage, as well as favorable debt metrics compared with those of rating peers.

Since launching its transformation journey in October 2024, Baystate has seen meaningful and measurable progress in ensuring its long-term financial stability. The focus on strong systems and processes is laying a strong foundation for financial resilience, and the core operations improvements have introduced new ways of thinking and sparked innovation in how Baystate operates and collaborates across its integrated delivery network. 

“We have a pioneering history for 141 years as the economic and health pillar in Western Massachusetts,” said Peter D. Banko, President & CEO of Baystate Health. “I am so proud of the difficult and tireless work of our incredible 13,000 caregivers over the past year to solidify a strong financial future for our system. Our focus remains on being the preferred destination to work and practice, delivering clinical excellence and improving care access and affordability throughout our hospitals, physician offices and Health New England, our integrated health plan.