S&P lowers North Oaks Health System's rating to 'BB+' on select bonds

S&P Global Ratings lowered its long-term rating and underlying rating to "BB+" from "BBB-" on Hammond, La.-based North Oaks Health System's series 2009A taxable hospital revenue bonds and series 2003A hospital revenue bonds.

"The rating action reflects our view of the deterioration of North Oaks' operations in 2016 and through the first six months of fiscal 2017, which have resulted in maximum annual debt coverage below 1.5x," said S&P analyst James Neville.

The outlook is negative, reflecting S&P Global Ratings' view the health system's thin operating profile and existing high debt burden will remain at current levels.

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