“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.
More articles on healthcare finance:
Moody’s: Nonprofit hospital rating downgrades rose sharply in 2017
University Medical Center operator threatens to terminate management agreement over budget impasse
9 recent hospital, health system outlook and credit rating actions
