Moody's Investors Service downgraded Corinth, Miss.-based Magnolia Regional Health Center's revenue bonds to "Baa3" from "Baa2", affecting $77.8 million of outstanding debt issued through the Mississippi Development Bank.
The downgrade is a result of several factors, including the hospital's weakened budget performance in fiscal year 2016, decline in absolute cash and challenging payer mix.
Moody's revised the outlook to negative at the lower rating level due to the hospital's weak financial performance and revised fiscal year 2017 expectations that are below historical trends.