Moody’s downgrades East Liverpool City Hospital’s bond rating

Moody’s Investors Service has downgraded the rating assigned to $7 million of outstanding bonds issued on behalf of East Liverpool (Ohio) City Hospital to “Caa1” from “B2.”

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The multi-notch downgrade was based on a number of factors, including the hospital’s “very high” operating cash flow losses, according to Moody’s.

East Liverpool City Hospital’s outlook is negative, which reflects “the high risk of debt acceleration and likely rapid decline in liquidity as well as potential for bankruptcy filing or troubled debt restructuring,” according to Moody’s.

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