Fitch downgrades El Paso County Hospital District to ‘A-‘

Fitch Ratings downgraded El Paso (Texas) County Hospital District to “A-” from “AA-,” affecting about $348.3 million of debt. The hospital district does business as University Medical Center of El Paso.

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Additionally, Fitch downgraded the district’s issuer default rating to “A-” from “AA-.”

The downgrade is a result of several factors, including the hospital district’s weak payer mix, limited cost flexibility and weak financial profile exemplified by light liquidity metrics and uneven operating profitability. Fitch favorably viewed the districts significant tax margin that supports operations.

The outlook is stable at the lower rating.

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