Fitch downgrades University Hospital’s rating to ‘BB-‘

Fitch Ratings downgraded the rating on Newark, N.J.-based University Hospital’s series 2015A revenue and refunding bonds to “BB-” from “BBB,” affecting about $255 million of debt.

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Concurrently, Fitch assigned its issuer default rating of “BB-” to University Hospital

The downgrade and assignment are based on several factors, including the hospital’s thin operating margin, weak payer mix and limited financial flexibility. Fitch acknowledged the hospital’s dominant market share in Newark.

The outlook is stable at the lower rating.

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