S&P Global Ratings downgraded the rating on Greenville (S.C.) Health System's long-term fixed rate debt to "A+" from "AA-."
The ratings agency also lowered the rating on the health system's series 2008B refunding variable-rate hospital bonds to "AA+/A-1+" from "AAA/A-1+."
"The downgrade reflects our view of GHS's weaker operating performance over the past couple of years and our expectation of potentially lighter-than-historical margins," said S&P analyst Margaret McNamara. "GHS has invested heavily over the past several years in information technology and to prepare the organization for population health. This has placed pressure on margins and key balance-sheet metrics."
The outlook is stable, reflecting S&P Global Ratings' assessment of the health system's leading business position, adequate financial profile and ongoing strategic investment in service lines and physician integration.