Moody's: Steward view to stable

Moody's Investors Service said it changed the outlook for Steward Health Care System LLC to stable from positive.

The agency also affirmed Steward's existing ratings, including the B3 corporate family rating and B3-PD probability of default rating.

The outlook change reflects Moody's expectation that improvements in Steward's operating results will take longer to realize than the rating agency originally expected given the challenging operating environment.

The agency said it anticipates that Steward will continue to operate with very high leverage and limited ability to repay debt through free cash flow due to continued weak volume trends and increased restructuring efforts. The slower pace of improvements in operating results will also make compliance with the financial covenants included in the company's term loan less certain over the next 12 to 18 months, Moody's said.

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