Moody's Investors Service downgraded Lancaster, Ohio-based Fairfield Medical Center's revenue bond rating from "Baa2" to Baa3," affecting $90 million of debt.
The rating reflects material declines in operating performance as well as Moody's expectation that the hospital's debt levels will rise as it funds a new outpatient center. Fairfield Medical Center's margin pressures also stem from lowered surgery volume as a result of the loss of an orthopedic group in late 2016.
The rating outlook remains negative.