Additionally, S&P downgraded NCH’s series 2016A revenue refunding bonds and series 2008 bonds to “A” from “A+.”
“The lowered rating reflects our view of NCH’s trend of accelerating operating losses, which management indicates will likely soften further by year end,” said Wendy Towber, an S&P Global Ratings credit analyst. S&P also acknowledged that NCH’s expense control efforts have not been sufficient enough thus far to overcome bad debt expenses and increased charity care.
The outlook is stable, reflecting S&P’s expectation that as NCH’s expense control efforts materialize its net operating income will begin to recover.
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