The downgrade is a result of the medical center’s revised near-term projections that indicate margins will be lower than anticipated. In addition, Moody’s unfavorably viewed Lafayette General’s below- average debt service coverage and pressured cash flow. Offsetting those challenges are Lafayette General’s favorable volume trends, leading market share and growing presence.
The outlook is stable at the lower level, reflecting the medical center’s turnaround efforts, including cost reduction strategies.
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