Astoria, Ore.-based Columbia Memorial Hospital, a critical access hospital, had its outlook revised from stable to negative amid concern over the amount of debt it may have to use for upcoming expansion, Fitch Ratings said May 1.
The "A-" rating on bonds the hospital has, as well as its long-term default rating, was affirmed.
While the extent of expense on the expansion has not been detailed, the capital plans could result in 180,000 of new square footage, Fitch said. The "generational" expansion focuses on the emergency room and newly renovated operating rooms as well as a new chapel and dining facilities.
Any significant issue of debt could pressure Columbia Memorial's strong leverage metrics, Fitch said.
"For the time being, Fitch expects the hospital will continue to display cash-to-adjusted debt levels that are consistent with a strong financial profile assessment," the ratings group added in the research note.