The confirmation of GSHS’s rating was based on the hospital’s receipt of executed forbearance agreements that extend the forbearance period to Dec. 31, 2014.
The revision of GSHS’s outlook was based on a number of factors, including the risks associated with the hospital’s debt structure. If requirements in the forbearance agreement are not met, a default event could be triggered, which would cause an immediate acceleration of GSHS’s bank-supported debt.
The negative outlook is also based on the expectation that GSHS will continue to have weak financial performance throughout the remainder of 2014 and 2015.
More articles on hospital credit ratings:
Moody’s downgrades Wake Forest Baptist to ‘A2’, outlook stable
Fitch affirms Harris County Hospital District’s ‘A’ rating, outlook stable
Moody’s revises MedStar Health’s outlook to positive
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