Fitch Ratings downgraded Lumberton, N.C.-based Southeastern Medical Center's bonds to "A-" from "A," affecting $30 million of debt. Concurrently, the credit agency assigned the medical center its "A-" issuer default rating.
The downgrade is a result of the medical center's weakened financial profile from additional debt and operating difficulties that emerged after Hurricane Matthew in October 2016. In addition, Fitch acknowledged the medical center's rural and economically challenged service area.
The outlook was revised to negative from stable, reflecting the execution risks associated with the hospital's initiatives to improve operating performance.