Moody's Investors Service downgraded Warner Robins, Ga.-based Houston Healthcare's rating to "Baa1" from "A3," affecting $73 million of debt.
The downgrade is a result of Houston Healthcare's operational challenges in fiscal year 2017, including a lower than average operating performance, declining patient volume and struggle to recruit physicians. Moody's also acknowledged Houston Healthcare's strong liquidity metrics.
The outlook was revised to negative from stable, reflecting the pressure Houston Healthcare's performance faces until it can stabilize patient volumes and restore financial performance to average levels.