S&P downgrades Flagler Hospital's rating to 'BBB+'

S&P Global Ratings downgraded St. Augustine, Fla.-based Flagler Hospital's issuer credit rating to "BBB+" from "A-."

Additionally, S&P assigned its "BBB+" rating to Flagler Hospital's series 2017A revenue bonds, affecting $32.6 million of debt.

"The lower rating reflects an increase in debt, coupled with weaker-than-expected operating results that began in fiscal 2016 and accelerated through the nine month interim period ended June 30, 2017," said Stephen Infranco, an S&P Global Ratings credit analyst.

S&P also acknowledged the hospital's declining patient volume.

The outlook is stable, reflecting S&P's expectation that Flagler Hospital's operating margin will improve in fiscal year 2018 due in part to a Medicaid modifier that took effect July 1, which enables Flagler to be designated as a rural hospital.

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars