Fitch downgrades Southeastern Medical Center to ‘A-‘, assigns negative outlook

Fitch Ratings downgraded Lumberton, N.C.-based Southeastern Medical Center’s bonds to “A-” from “A,” affecting $30 million of debt. Concurrently, the credit agency assigned the medical center its “A-” issuer default rating.

Advertisement

The downgrade is a result of the medical center’s weakened financial profile from additional debt and operating difficulties that emerged after Hurricane Matthew in October 2016. In addition, Fitch acknowledged the medical center’s rural and economically challenged service area.

The outlook was revised to negative from stable, reflecting the execution risks associated with the hospital’s initiatives to improve operating performance.

More articles on healthcare finance:
12 hospitals with strong finances
California health system’s bankruptcy challenged by employee union
Oklahoma hospital on brink of closure gets taxpayer infusion to make payroll

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Advertisement

Next Up in Financial Management

Advertisement

Comments are closed.