Moody’s revises Doctors Community Hospital’s outlook to negative

Moody’s Investors Servicerevised Goddard, Md.-based Doctors Community Hospital’s outlook to negative and affirmed its “Baa3” rating on the hospital’s outstanding bonds. The action affects $64.2 million of debt. 

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The affirmation is a result of several factors, including the hospital’s favorable service area, leading local market share, reputation as a low-cost provider and Maryland’s regulated rating environment, which provides revenue predictability. Moody’s unfavorably viewed the hospital’s high leverage and low liquidity. 

The outlook was revised to negative from stable, reflecting the hospital’s liquidity decline in fiscal year 2017 and its small scale. 

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