The downgrade is a result of S&P’s updated rating criteria, which place more emphasis on both enterprise and financial attributes that affect ratings.
The agency also reflects the hospital’s historically strong operating margins, its solid tax support, stable unrestricted reserves and relatively strong cash to long-term debt ratios.
The outlook is stable, reflecting S&P’s expectation that the hospital will bounce back from the one-time losses in fiscal year 2017.
More articles on healthcare finance:
CMS miscalculated MIPS payment adjustments: 4 things to know
Memorial Sloan Kettering shifts fundraising focus as problems mount
CHS could face cash crunch after $262M settlement, Moody’s warns
