“The rating action reflects our view that LCMC’s balance sheet no longer provides the needed cushion to offset the weaker and more uneven trend of financial performance of the organization,” said S&P analyst Suzie Desai.
S&P also lowered the issuer credit rating to “A+” from “AA-” on New Orleans-based Children’s Hospital of Louisiana, an entity of LCMC.
The outlook is stable, reflecting S&P’s view of LCMC’s healthy balance sheet, solid market position and robust annual debt service coverage.
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