Redeemer Health, which owns and operates Holy Redeemer Hospital in the Meadowbrook section of Abington and a branch in Huntingdon Valley, had had its ratings downgraded to ‘B+’ from “BB-.” by Fitch Ratings, The Philadelphia Business Journal reported.

Fitch said the downgrade is due to the health system’s “ongoing operating pressures” and noted that “financial performance remains weak.” Redeemer Health had an operating loss of $33 million through the first nine months of fiscal 2025, which ends June 30.

“The agency’s B ratings indicate that material default risk for a debt is present, but a limited margin of safety remains,” The Journal wrote. “Its BB ratings indicate an elevated vulnerability to default risk.”

In January, Redeemer Health launched a $46 million plan to improve revenue and cut expenses

“Their decision was based on a snapshot in time before many of our improvement efforts had a chance to show sustained positive results,” Redeemer Health told The Journal in a statement. “We are seeing strong signs of progress and growth. We are well ahead of our objective for year one, realizing more progress than planned for this year.”

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