Moody's Investors Service downgraded the issuer rating on Davenport, Wash.-based Lincoln County Public Hospital District No. 3 to "A3" from "A2."
The downgrade is a result of the hospital district's upcoming capital project, which will raise leverage ratios and its status as a small rural hospital, posing competitive and operating risks. Moody's also acknowledged the hospital district's stable tax base, modest debt burden and satisfactory financial results.
An outlook was not assigned. Moody's typically doesn't assign outlooks to credits with limited debt outstanding.
Lincoln County Public Hospital District No. 3 services a population of about 8,300. It owns and operates Davenport-based Lincoln Hospital, a 25-bed acute care hospital as well as three medical clinics and an outpatient physical therapy center.