Moody's has downgraded Jackson-based West Tennessee Healthcare's rating from "A2" to "A3."
The downgrade reflects Moody's view that materially weaker days of cash on hand and cash-to-debt measures "no longer support the higher rating at a time when performance is still recovering and substantial capital spend will slow the rebuild of liquidity," the ratings agency said in an Aug. 22 report.
Despite the downgrade, Moody's said that the system has a very good market position with distinctly leading market share and a lack of material inpatient competition. The system will also continue to benefit from its large employed physician group, expansion in its service line and strategic partnerships.
West Tennessee Healthcare has a stable outlook with Moody's.