Moody’s downgrades rating on Monongahela Valley Hospital bonds to ‘Ba1’

Moody’s Investors Service downgraded the underlying rating assigned to Monongahela (Pa.) Valley Hospital’s series 2011A and 2011B variable-rate demand bonds to “Ba1” from “Baa2,” affecting approximately $23.7 million of rated debt.

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The downgrade is the result of a number of factors, including the hospital’s weaker-than-expected financial performance and the unexpected addition of fixed requirements on cash flow from incremental new debt.

The outlook is negative, reflecting Moody’s Investors Service’s expectation the hospital’s current weaker operating performance levels will be insufficient to support the expected ongoing usage of cash needed to maintain MVH’s market position in the broader competitive market.

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