Moody's Investors Service downgraded Metairie, La.-based East Jefferson General Health's rating to "Caa1" from "B3," affecting $142 million of rated debt.
The downgrade is a result of several factors, including the health system's declining inpatient market, highly competitive market and expected violation of its debt service coverage covenant for the second consecutive year. Moody's also acknowledged that affiliation negotiations were terminated between East Jefferson General and a larger health system.
The outlook remains negative, reflecting Moody's expectation that the health system will continue to see volume declines and operating losses.
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