Moody’s downgrades Midland County Hospital District’s debt rating to ‘Aa3’

Moody’s Investors Service downgraded Midland (Texas) County Hospital District’s general obligation debt rating to “Aa3” from “Aa2,” affecting $101.1 million of general obligation debt.

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The downgrade is a result of several factors, including variability in hospital operating margins, weakening liquidity measures and increases in non-general obligation debt. Moody’s also acknowledged the hospital district’s large tax base, light debt burden, favorable income levels, solid fiscal management and lack of inpatient competition.

The outlook is stable, reflecting Moody’s expectation that the hospital district’s financial performance will continue to improve to balance out the increase of debt and decrease in liquidity.

The Midland County Hospital District is a full-service health system that includes a 474-bed hospital.  

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