Moody's Investors Service has downgraded Ashland, Ky.-based King's Daughters' Medical Center's rating to "Baa2," affecting $239 million of outstanding debt.
The rating downgrade was based on a number of factors, including KDMC's continued significant volume and revenue declines, driving greater-than-expected operating losses in fiscal year 2015, which Moody's expects to continue.
The outlook is negative, reflecting ongoing challenges related to volume losses, physician departures and legal fees.