Moody’s downgrades Tallahassee Memorial HealthCare’s outlook

Moody’s Investors Service has assigned a “Baa1” rating to Tallahassee (Fla.) Memorial HealthCare’s proposed $103 million of series 2015A bonds and lowered the hospital’s outlook to stable from positive.

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The 772-bed hospital’s strengths were considered for the rating affirmation, including its consistently favorable profitability margins.

TMH also faces some challenges, which were considered for the rating affirmation, such as increasing Medicaid exposure.

The outlook revision “reflects the sizable upcoming capital and associated construction risk with TMH’s plan to build a new patient tower on the main campus,” according to Moody’s.

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