S&P Global Ratings downgraded Jackson-Madison County General Hospital, based in Jackson, Tenn., to "A" from "A+." The hospital does business as West Tennessee Healthcare.
Concurrently, S&P assigned its "A" rating to the hospital's $62.7 million series 2018A and $90.9 million series 2018B.
"The lower rating reflects our view of WTH's weaker financial profile following the acquisition of the Tennova West assets of [Nashville, Tenn.-based] Community Health System in West Tennessee," said S&P Global Ratings credit analyst Stephen Infranco.
The rating also reflects several positive and negative factors, including the hospital's light liquidity, unfavorable payer mix, growing market position, experienced management team and potential to realize further integration benefits from the acquisition.
The outlook is stable, reflecting S&P's expectation that the hospital will control expenses to improve operations in fiscal year 2019.