Moody's downgrades Lafayette General Medical Center

Moody's Investors Service downgraded its rating on Lafayette (La.) General Medical Center to "Baa2" from "Baa1," affecting $147 million of rated debt.

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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