S&P Global Ratings lowered the rating on Pasadena, Calif.-based Huntington Memorial Hospital's $232 million of series 2005, 2014A and 2014B bonds to "A-" from "A."
"The downgrade reflects persistently high operating losses, which exceed budgeted expectations and have in turn resulted in thin debt service coverage for the rating level," said S&P analyst Cynthia Keller.
The outlook is stable, reflecting S&P's view of HMH's strong business position and solid balance sheet.