Moody's Investors Service downgraded Milford (Mass.) Regional Medical Center's bonds to "Ba1" from "Baa3," affecting $107 million of rated debt.
The downgrade is a result of the medical center's weakening balance sheet metrics coupled with an elevated debt to cash flow ratio. In addition Moody's acknowledged the medical center's highly competitive market, small size and reliance on donations to refund a large capital project. Offsetting these factors is the medical center's strong network of affiliations with academic medical centers and stabilizing volume and revenue growth.
The outlook was revised to stable at the new rating, reflecting Moody's expectation that MRMC will improve operations and stabilize liquidity according to plan in fiscal year 2017.