S&P Global Ratings downgraded Mobile, Ala.-based Infirmary Health System's issuer credit rating to "BBB+" from "A-."
Concurrently, S&P lowered the rating on IHS' series 2010A and 2016A revenue bonds to "BBB+" from "A-."
"The lower rating reflects IHS' continued operating losses, with margins remaining well below median levels for the rating," said S&P credit analyst Patrick Zagar.
S&P also acknowledged that the health system's operating performance has not improved in line with long-term expectations.
The outlook is stable, reflecting IHS' healthy balance sheet and improving market position.