The downgrade is a result of Nash Health Care’s significant fiscal year 2018 operating loss, coupled with its expected operating loss in fiscal year 2019 because of volume pressures and a one-time IT implementation expense.
“The lower rating reflects our view of Nash’s worsening financial performance for the past two years, exemplified by a $25.6 million operating loss in fiscal 2018,” said S&P credit analyst Kenneth Gacka.
S&P acknowledged several credit strengths, including Nash’s high reserves and relatively light debt burden.
The outlook is negative, reflecting the substantial operating losses, which resulted in weak margin and debt coverage metrics.
More articles on healthcare finance:
Frontier Airlines chairman donates $25M to Mayo’s new medical school
RCM tip of the day: Keep your physicians happy
Medicare auditors saved program $214M in FY 2016 and 7 other things to know
