Moody's Investors Service downgraded Yuba City, Calif.-based Fremont-Rideout Health Group's rating to "B1" from "Ba3," affecting approximately $112 million of debt.
The downgrade is based on a number of factors, including ongoing cash flow pressures, lower-than-budgeted revenue growth and rising expenses associated with ongoing capital improvements.
The outlook is negative, reflecting Moody's Investors Service's expectation the group will face continued operational challenges and further cash decline.