Moody’s downgrades rating to ‘B3’ on East Jefferson General Hospital

Moody’s Investors Service downgraded Metairie, La.-based East Jefferson General Hospital’s debt rating to “B3” from “Ba3,” affecting $152 million of outstanding debt.

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The downgrade is a result of several factors, including the hospital’s unfavorable budget variance, declining liquidity metrics, highly competitive market and decreasing patient volumes.

The outlook is negative, reflecting Moody’s expectation that the hospital’s financial performance will remain weak, elevating its risk to breaking a debt service covenant.

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