Fitch Ratings downgraded Spartanburg (S.C.) Regional Health Services District to "BBB" from "A," affecting $123.8 million of debt.
The downgrade is a result of the district's weaker net leverage profile, which is characterized by its $904.8 million net pension liability.
Fitch favorably viewed the district's leading market position, solid payer mix and ongoing construction project, which is expected to add top-line revenue and grow patient volume upon completion.
The outlook is stable at the lower rating.