Moody's Investors Services revised its outlook for Ascension to negative, from stable, due to the health system's cybersecurity incident and concerns over its ability to improve its financial position.
However, the credit ratings agency said it affirmed its ratings for Ascension's senior bonds, subordinated bonds and commercial paper instruments.
Related: Henry Ford Health to take over 8 Ascension hospitals
The St. Louis-based health system has taken several steps to downsize its footprint, which Moody's noted would "reduce material losses and allow the system to focus on growth strategies in other markets."
Still the ratings agency said its negative outlook was based on financial challenges that included Ascension's cybersecurity incident.
"While cash on hand will likely stay above 200 days, it will be difficult to grow to peer levels because of modest cashflow, rising capital spending, and any potential cash impact related to the cybersecurity incident," Moody's said.
The 140-hospital system announced a major cybersecurity incident in early May, when its electronic health record system and MyChart went offline. The system later said the attack, which also caused surgery delays, may have compromised patient data.
In June, the University of Alabama at Birmingham Health System Authority agreed to acquire Ascension St. Vincent's, a cluster of five Ascension facilities, for $450 million. Ascension also sold 13 facilities to Ontario, California-based Prime Healthcare in July.
Next month, eight Ascension hospitals will become part of Henry Ford Health through a joint venture.
