Fitch Ratings downgraded Owensboro (Ky.) Health's rating to "BB+" from "BBB," affecting $600 million of outstanding bonds.
Concurrently, Fitch assigned its "BB+" issuer default rating to Owensboro Health.
The downgrade and assignment are based on Owensboro Health's heavy debt burden, resulting in a highly leveraged financial profile under Fitch's new nonprofit hospital rating criteria. Fitch also acknowledged the health system's dominant market position and strong profitability.
The outlook is stable.