10 recent hospital credit downgrades

The following 10 healthcare facility and health system credit score downgrades took place given that July 1. They are listed in alphabetical order..

1. Butler (Pa.) Health System– from “A+” to “A” (Fitch Ratings) “The one-notch downgrade to the A ranking reflects BHSs ongoing functional obstacles that will constrain the systems ability to quickly recover from profits dislocation stemming from the coronavirus pandemic,” Fitch said.

2. Cape Cod Healthcare (Hyannis, Mass.)– from “A+” to “A” (S&P Global Ratings)” The lower rating shows Cape Cod Healthcares weaker performance through the 6 months ended March 31, 2020, and diminished liquidity over this period, as well as our expectation for a considerable loss for fiscal 2020,” said S&P Global Ratings credit expert Anne Cosgrove.

3. Care New England (Providence, R.I.)– from “BB” to “BB-” (Fitch Ratings); from “BB-” to “B+” (S&P Global Ratings) “The downgrade reflects weak pre-COVID-19 financial efficiency and our expectation for a significant loss in financial 2020,” stated S&P Global Ratings credit expert Cynthia Keller.

4. Grand View Hospital (Sellersville, Pa.)– from “A-” to “BBB+” (S&P Global Ratings) “The downgrade shows our view of GVHs financial profile, particularly the medical facilitys weakening operating performance highlighted by a pattern of speeding up operating losses and decreasing maximum annual debt service coverage, with an increasing reliance on nonoperating income,” said S&P Global Ratings credit expert Wendy Towber.

5. Heritage Valley Health System (Beaver, Pa.)– from “A2” to “A3″ (Moodys Investors Service)” The downgrade to A3 reflects Heritage Valley Health Systems weak operating performance in fiscal 2020 and an expectation that margins will stay listed below historic levels,” Moodys stated..

6. John Fitzgibbon Memorial Hospital (Marshall, Mo.)– from “B” to “B-” (Fitch Ratings) “The one-notch downgrade reflects JFMHs total operational wear and tear,” Fitch stated. “Despite some enhancements in performance through six months of fiscal 2020 … JFMHs unaudited 12-month financial 2020 results reveal a decline in success partly due to some continued operating challenges (i.e. higher-than-budgeted self-insurance claims and a high incidence of self-pay patients), however primarily since of the coronavirus pandemic.”.

7. Mon Health (Morgantown, W.Va.)– from “BBB+” to “BBB” (S&P Global Ratings)” The reduced rating reflects our view of the health centers ongoing operating losses, which have been intensified by the effects of the COVID-19 pandemic and occurring recession,” said S&P Global Ratings credit expert Chloe Pickett..

8. Pioneers Memorial Healthcare (Brawley, Calif.)– from “BBB-” to “BB” (Fitch Ratings) “The two-notch downgrade to the BB ranking reflects [Pioneers Memorial Healthcare Districts] continued running difficulties leading up to the coronavirus pandemic that has limited PMHDs overall monetary versatility,” Fitch stated..

9. ProMedica (Toledo, Ohio)– from “BBB” to “BBB-” (Fitch Ratings) “ProMedicas one-notch ranking modification to BBB- from BBB and ranking outlook revision to stable reflect continuous developments in ProMedicas general credit profile,” Fitch stated. “In Fitchs opinion the design set out by ProMedica– having an insurance coverage (payer) department, a severe care (healthcare facility) department, and a post-acute (long-lasting care) department– remains basically sound; however, the roadway to generating expected financial results is longer and more tough than initially anticipated.”.

10. South Shore Hospital (Weymouth, Mass.)– from “Baa1” to “Baa2” (Moodys Investors Service) “The downgrade to Baa2 reflects South Shore Hospitals weak operating performance through financial 2020, continuing a trend of weaker performance that emerged pre-coronavirus, and expectations take a while to sustainably return margins to strong levels,” Moodys stated..

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“Despite some enhancements in efficiency through six months of financial 2020 … JFMHs unaudited 12-month fiscal 2020 results show a decrease in profitability partially due to some continued operating difficulties (i.e. higher-than-budgeted self-insurance claims and a high occurrence of self-pay clients), but mainly since of the coronavirus pandemic.”.

ProMedica (Toledo, Ohio)– from “BBB” to “BBB-” (Fitch Ratings) “ProMedicas one-notch score modification to BBB- from BBB and score outlook revision to stable reflect continuous developments in ProMedicas total credit profile,” Fitch said. “In Fitchs viewpoint the model set out by ProMedica– having an insurance coverage (payer) department, a severe care (hospital) division, and a post-acute (long-lasting care) division– remains essentially sound; nevertheless, the roadway to generating expected monetary outcomes is longer and more difficult than initially anticipated.”.

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