Moody's Investors Service has downgraded Marysville, Calif.-based Fremont-Rideout Health Group's rating to "Ba3" from "Baa2," affecting approximately $112 million of debt.
The downgrade is based on a number of factors, including the severity of the liquidity risk posed by an expected covenant breach.
The rating is under review for further downgrade due to uncertainty around the timing and execution of a forbearance agreement.