Moody's Investors Service downgraded Brunswick-based Southeast Georgia Health System's revenue bonds from "A2" to "A3," affecting $142 million of outstanding debt.
Concurrently, Moody's assigned its "A3" rating on SGHS' proposed $104 million series 2017 bonds.
The downgrade is a result of several factors, including SGHS' heavy debt burden, high leverage position and weakened operating performance. Moody's also acknowledged the health system's dominant market position and maintenance of liquidity measures in recent years.
The outlook is negative, reflecting the health system's decline in operating performance.