S&P revises Methodist Hospital’s outlook to negative on declining operating performance

S&P Global Ratings affirmed its “BBB” long-term rating on Gary, Ind.-based Methodist Hospital’s series 2014 revenue refunding bonds.

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At the same time, S&P revised the outlook to negative from stable, reflecting Methodist’s sharp decline in operating performance in fiscal year 2017, sustained deterioration of cash on hand as well as its uncertain market position after merger discussions ended between Methodist and Mishawka, Ind.-based Franciscan Alliance.

The affirmation is a result of Methodist’s healthy debt service coverage, low debt burden and favorable inpatient admission trends.

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