Fitch assigned its "BB+" rating to Lawrence (Mass.) General Hospital's proposed $69 million series 2017 revenue bonds.
In addition, Fitch affirmed its "BB+" rating on LGH's parity debt, affecting $43.4 million of debt.
The assignment and affirmation are a result of several factors, including LGH's high capital spending plans, disrupted operations during a major upgrade, weakened operating margins, unfavorable liquidity metrics. Fitch also acknowledged the LGH's strong clinical affiliations that help offset the unfavorable payer mix.
The outlook was revised to negative from stable, reflecting LGH's stressed financial profile as additional debt is accumulated.