Moody’s Ratings raised Doylestown Health’s credit rating last week, upgrading it from B3 to B2, writes Harold Brubaker for The Philadelphia Inquirer.

The Bucks County nonprofit also saw its outlook boosted from positive to stable.

The new rating remains quite low, indicating that Doylestown Health’s financial condition is still challenging.

The upgrade comes after an improvement in the amount of cash the nonprofit has on hand compared to expenses and debt along with improved operating results. Meanwhile, the upgrade does not take into account the pending acquisition of Doylestown Health by the University of Pennsylvania Health System.

Moody’s upgrade follows Standard & Poor raising the nonprofit’s rating in August.

Doylestown Health managed to trim its operating losses significantly for the year that ended June 30. The nonprofit reported a $5.9 million loss, which is a significant reduction compared to $19.2 million the year before.

Additionally, Doylestown Health saw its revenue go up to $446.8 million in fiscal 2024, compared to $417.9 million in fiscal 2023.

If the acquisition by Penn goes as expected, Grand View in Bucks County would be one of only two remaining health systems that operate just one hospital in the Philadelphia region.

Read more about Doylestown Health’s credit rating increase in The Philadelphia Inquirer.