Moody's Investors Service downgraded Banning, Calif.-based San Gorgonio Memorial Healthcare District's general obligation bond rating to "Baa3" from "A3," affecting $115.7 million of outstanding debt.
The downgrade is a result of several factors, including the district's declining patient volume, weak financial performance, unfavorable payer mix and difficulty recruiting physicians. Moody's also acknowledged the uncertainty the district is facing as it works to secure an operating partner and funding for earthquake-resistant renovations.
The outlook remains negative, reflecting the uncertainty surrounding the district's ability to improve finances, patient utilization and physician retention.