The downgraded outlook was based on a number of factors, including Stamford Hospital’s weakened operating performance. The hospital’s maximum annual debt service coverage has suffered as a result of its inability to overcome the cost of Connecticut’s hospital tax.
The outlook revision was also based on the expectation that the hospital’s balance sheet will be weakened by depressed cash flow.
According to S&P, it is not likely the hospital will receive a higher rating in the near future despite the hospital’s strategic growth initiatives.
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