Redeemer Health, which owns and operates Holy Redeemer Hospital in the Meadowbrook section of Abington and a branch in Huntingdon Valley, had its Moody’s Ratings upgraded to stable from negative, The Philadelphia Business Journal reported.

According to the story, fiscal performance and stronger operating momentum are behind the upgrade. The health system’s projected fiscal 2026 operating cash flow margin is about 2% “because of ongoing turnaround initiatives and about $15 million in one-time asset sales”, The Journal said.

Redeemer Health’s operating loss of $16.7 million in the fiscal year ended June 30 “was an improvement from a $53.2 million operating loss the previous year. Revenue rose 8.5% year over year to $479.9 million, up from $442.6 million in fiscal 2024”, The Journal said.

Moody’s also “affirmed Redeemer Health’s B1 revenue bond rating on about $120 million in outstanding debt, which means the bond is considered speculative and carries a high credit risk, indicating a significant chance of default compared to investment-grade bonds.”

In May, the hospital received an “A” rating for the fifth straight year in The Leapfrog Group’s spring 2025 Hospital Safety Grades, qualifying it for recognition as a “Straight A” hospital.

In June, the system had its ratings downgraded to ‘B+’ from “BB-.” by Fitch Ratings due to the health system’s “ongoing operating pressures” and noted that “financial performance remains weak.” 

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

For all the latest news, follow us on Facebook or sign up for Glenside Local’s “Daily Buzz” newsletter here.