“The outlook revision reflects our view of the continued softening of Memorial’s profitability in fiscal year 2016 as well as the continued operating margin compression year-to-date for fiscal [year] 2017, both of which are underperforming budget expectations,” said S&P analyst Wendy Towber. “The negative outlook also reflects our view of Memorial’s departure from a multiyear trend of stable financial metrics, due in part to declining inpatient volumes and a shift in payer mix.”
The ratings agency also affirmed the “A-” long-term rating on MHHC’s $53 million of series 2013 revenue bonds.
More articles on healthcare finance:
S&P assigns ‘AA-‘ rating to Froedtert Health’s debt
Moody’s affirms ‘A1’ rating on Memorial Health System’s bonds
Moody’s affirms ‘Baa2’ rating on Pacific County Public Hospital District’s debt
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