S&P Global Ratings has assigned a "BBB" rating to Ashland, Ky.-based King's Daughters Medical Center's $75 million of series 2016A bonds.
"We assessed KDMC's enterprise profile as adequate characterized by a good market share in its primary service area, although inpatient volume declines remain a rating focal point that merits continued surveillance, and its financial profile as adequate, citing multiple years of operating losses, which improved in fiscal 2015 and continue to improve in fiscal 2016 year-to-date, with a weaker, but stabilized balance sheet," said S&P analyst Kevin Holloran.
The outlook is stable, reflecting KDMC's weakened financial position but recently stabilized balance sheet metrics.