Fitch Ratings has affirmed the "A" rating assigned to $14.1 million of series 1994A revenue refunding and improvement bonds and $59.6 million of series 2001A revenue bonds issued on behalf of Memorial Hospital at Gulfport (Miss.) by the City of Gulfport.
Fitch also downgraded the 445-bed hospital's outlook to negative from stable.
The rating affirmation was based on a number of factors, including the hospitals leading market position and low debt burden. However, those strengths were offset by a decline in the hospital's operating cash flow in fiscal year 2014.
The outlook revision was driven by a "sharp decline in liquidity" in FY 2014, which was partly due to the facilities EHR conversion, according to Fitch.
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