10 latest hospital credit downgrades

The following 10 hospital and health system credit rating downgrades occurred in the past four months. 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. 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.

3. Hospital Sisters Health System (Springfield, Ill.) — from "AA-" to "A+" (Fitch Ratings)
"The downgrade reflects that HSHS has faced considerable operating pressures in the last two years, including the coronavirus pandemic and associated economic recession," Fitch said

4. 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."

5. MarinHealth Medical Center (Greenbrae, Calif.) — from "A-" to "BBB+" (Fitch Ratings)
"The downgrade of MH's revenue bond rating and IDR to 'BBB+' is driven by greater than expected operating pressures in fiscal 2019 and weak operating performance leading up to the coronavirus pandemic," Fitch said.  

6. Marion (Ind.) General Hospital — from "A+" to "A" (S&P Global Ratings)
"The lower rating reflects our view of MGH's balance sheet deterioration following the issuance of the series 2020 bonds, including worsened maximum annual debt service coverage, debt burden, leverage, and unrestricted reserves to long-term debt," said S&P Global Ratings credit analyst Chloe Pickett.

7. 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. 

8. 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. 

9. The Methodist Hospitals (Gary, Ind.) — from "BBB" to "BBB-" (Fitch Ratings)
"The downgrade to 'BBB-' is based on continued operating constraints after significant losses in 2017 through 2019. Interim nine-month fiscal 2020 operating income results, despite the pandemic, reflect an early stabilization trend but at weaker levels that are more consistent with the prior three years," Fitch said.

10. Tower Health (West Reading, Pa.) — from "BBB+" to "BB+ (S&P Global Ratings); from "BBB" to "BB+" (Fitch Ratings)
"The three-notch downgrade reflects the significant deterioration in Tower Health's financial profile in the fiscal year ended June 30, 2020, including a severe loss from operations and negative cash flow resulting in inadequate debt service coverage ratios," said S&P Global Ratings credit analyst Kenneth Gacka.

More articles on healthcare finance:
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HCA records $668M profit in Q3
73-year-old Georgia hospital closes

Editor's note: This article was updated Dec. 2 to remove Hackensack Meridian Health, which was listed in error. 

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