Moody's Investors Service downgraded the Hospital Authority of Valdosta (Ga.) and Lowndes County's revenue certificates to "Baa3" from "A3," affecting $48 million of debt. The hospital authority does business as South Georgia Medical Center.
The downgrade is a result of the medical center's significant financial losses expected in fiscal year 2018 and unexpected departure of its CEO. Moody's favorably viewed the hospital's adequate cash reserves and absence of immediate competition.
The outlook remains negative, reflecting the hospital's expected operating losses in fiscal year 2018.