S&P Global Ratings downgraded West Columbia, S.C.-based Lexington Medical Center's series 2011, 2016 and 2017 revenue bonds to "A" from "A+."
The downgrade is a result of an analytic error from S&P that resulted from misunderstanding the risk associated with the defined benefit plan LMC participates in.
"In particular, we failed to incorporate into our analysis the appropriate budgetary uncertainty and financial profile risk considering the ongoing weak funded status of SCRS and the increasing employer contributions expected over the next several years," said S&P credit analyst Patrick Zagar. "This downgrade reflects the incorporation of those risks into our analysis."
The outlook is stable.