Standard & Poor's Ratings Services has lowered the underlying ratings to "A-" from "A" on Fort Lauderdale, Fla.-based Broward Health's series 2005A, 2007 and 2008A variable-rate demand bonds.
The outlook is negative.
"The lower rating and negative outlook reflect weakened operating results through the six-month period ended Dec. 31, 2015, with the potential for a rate covenant violation barring improvement through the remainder of the fiscal year," said S&P credit analyst Stephen Infranco.
The downgrade and negative outlook are also based on a $69.5 million settlement agreement between Broward Health and the U.S. Department of Justice, an ongoing state review of Broward Health's contractual arrangements and a void in senior leadership after former President and CEO Nabil El Sanadi, MD, died of a self-inflicted gunshot wound.