10 recent hospital credit downgrades

The following 10 hospital and health system credit rating downgrades occurred since July 1. They are listed in alphabetical order. 

1. Butler (Pa.) Health System — from "A+" to "A" (Fitch Ratings)
"The one-notch downgrade to the 'A' rating reflects BHS's ongoing operational challenges that will constrain the system's ability to easily recover from revenue dislocation stemming from the coronavirus pandemic," Fitch said.

2. Cape Cod Healthcare (Hyannis, Mass.) — from "A+" to "A" (S&P Global Ratings)
"The lower rating reflects Cape Cod Healthcare's weaker performance through the six months ended March 31, 2020, and diminished liquidity over this period, as well as our expectation for a significant loss for fiscal 2020," said S&P Global Ratings credit analyst Anne Cosgrove.

3. Care New England (Providence, R.I.) — from "BB" to "BB-" (Fitch Ratings); from "BB-" to "B+" (S&P Global Ratings)
"The downgrade reflects weak pre-COVID-19 financial performance and our expectation for a significant loss in fiscal 2020," said S&P Global Ratings credit analyst Cynthia Keller.

4. Grand View Hospital (Sellersville, Pa.) — from "A-" to "BBB+" (S&P Global Ratings)
"The downgrade reflects our view of GVH's financial profile, particularly the hospital's weakening operating performance highlighted by a trend of accelerating operating losses and declining maximum annual debt service coverage, with an increasing reliance on nonoperating income," said S&P Global Ratings credit analyst Wendy Towber.

5. Heritage Valley Health System (Beaver, Pa.) — from "A2" to "A3" (Moody's Investors Service)
"The downgrade to 'A3' reflects Heritage Valley Health System's weak operating performance in fiscal 2020 and an expectation that margins will remain below historical levels," Moody's said. 

6. John Fitzgibbon Memorial Hospital (Marshall, Mo.) — from "B" to "B-" (Fitch Ratings)
"The one-notch downgrade reflects JFMH's overall operational deterioration," Fitch said.  "Despite some improvements in performance through six months of fiscal 2020 ... JFMH's unaudited 12-month fiscal 2020 results show a decline in profitability partly due to some continued operating challenges (i.e. higher-than-budgeted self-insurance claims and a high incidence of self-pay patients), but primarily because of the coronavirus pandemic."

7. Mon Health (Morgantown, W.Va.) — from "BBB+" to "BBB" (S&P Global Ratings)
"The lowered rating reflects our view of the hospital's continued operating losses, which have been exacerbated by the effects of the COVID-19 pandemic and ensuing recession," said S&P Global Ratings credit analyst Chloe Pickett. 

8. Pioneers Memorial Healthcare (Brawley, Calif.) — from "BBB-" to "BB" (Fitch Ratings) 
"The two-notch downgrade to the 'BB' rating reflects [Pioneers Memorial Healthcare District's] continued operating challenges leading up to the coronavirus pandemic that has limited PMHD's overall financial flexibility," Fitch said. 

9. ProMedica (Toledo, Ohio) — from "BBB" to "BBB-" (Fitch Ratings)
"ProMedica's one-notch rating revision to 'BBB-' from 'BBB' and rating outlook revision to stable reflect ongoing developments in ProMedica's overall credit profile," Fitch said. "In Fitch's opinion the model set out by ProMedica — having an insurance (payer) division, an acute care (hospital) division, and a post-acute (long-term care) division — remains fundamentally sound; however, the road to generating expected financial results is longer and more challenging than originally anticipated."

10. South Shore Hospital (Weymouth, Mass.) — from "Baa1" to "Baa2" (Moody's Investors Service)
"The downgrade to 'Baa2' reflects South Shore Hospital's weak operating performance through fiscal 2020, continuing a trend of weaker performance that emerged pre-coronavirus, and expectations take some time to sustainably return margins to strong levels," Moody's said. 

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