S&P Global Ratings has lowered its rating to "B-" from "BB+" on Mission (Texas) Regional Medical Center's $26.7 million of series 2005, 2007 and 2008 bonds.
The downgrade is based on numerous factors, including Mission's comparatively small size. "We assessed Mission's enterprise profile as adequate, reflecting the medical center's competitive primary service area and its 24.5 percent market share, and its financial profile as vulnerable citing Mission's extreme operating volatility as of late, and limited reserve levels," said S&P analyst Kevin Holloran.
The outlook is negative, reflecting S&P's view of Mission's substantial deterioration of operating income levels in fiscal year 2015.