The rating downgrade to Baa2 reflects Winthrop’s weaker financial performance and low case flow generation in 2013, in addition to the organization’s proposed additional debt of $60 million to fund various strategic capital projects. Winthrop’s operating cash flow has declined year-over-year, with a low 4.4 percent operating cash flow margin in 2013.
The rating outlook for Winthrop still remains stable with the Baa2 rating due to the organization’s size, strong revenue growth, patient volume growth and expectation of stable financial performance going forward.
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