S&P Global Ratings downgraded Viroqua, Wis.-based Vernon Memorial Hospital to "BBB-" from BBB."
"The downgrade reflects the hospital's materially weaker operating performance in fiscal [year] 2017 that missed the budget for the second consecutive year, resulting in declining margins, lighter maximum annual debt service coverage, and weaker liquidity," said S&P Global Ratings credit analyst Wendy Towber.
The outlook was revised to stable from negative, reflecting the hospital's positive operating results in the first quarter of fiscal year 2018.