S&P Global Ratings downgraded the rating on Fort Lauderdale, Fla.-based Broward Hospital District's series 2005A, 2007 and 2008A variable-rate revenue bonds to "BBB+" from "A-."
S&P also lowered the rating to "AA-/A-1+" from "AA/A-1+" on North Broward Hospital District's series 2005A, 2007 and 2008A bonds.
The outlook is negative, reflecting S&P's expectation that the health system's operational challenges will continue amidst the struggle to find permanent leadership.
"The lower rating and negative outlook reflect continued weak operating results, thin cash flow and the continued void in permanent senior leadership, with many positions filled on an interim basis during a period of significant challenges and heightened scrutiny," said Stephen Infranco, an S&P Global Ratings analyst.
North Broward Hospital District does business as Broward Health.