S&P downgrades East Jefferson General Hospital’s rating to ‘B+’

S&P Global Ratings downgraded Metairie, La.-based East Jefferson General Hospital’s series 2011 hospital revenue bonds to “B+” from “BB.”

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The outlook is negative.

“The downgrade and negative outlook is the result of EJGH’s mounting operational challenges and multi-year operating losses exemplified by a $16 million operating loss in fiscal 2016…and continued operating losses through interim 2017 resulting in maximum annual debt service coverage [declines],” said Aamna Shah, an S&P Global Ratings credit analyst. “Operating losses are largely the result of volume pressure due to the loss of key physicians.”

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