Moody's Investors Services revised Jefferson City, Mo.-based Capital Region Medical Center's rating to "Baa1" from "A3," affecting approximately $25.8 million of series 2011 fixed-rate revenue bonds.
The downgrade is based on a variety of factors, including the medical center's third consecutive year of weaker operating performance and greater-than-expected declines in liquidity following the construction of a new outpatient center on its main campus in fiscal year 2016.
The outlook is negative, reflecting Moody's Investors Service's expectation CRMC will face ongoing challenges with respect to operating performance if the medical center's cash flow cannot cover its operating expenses.