S&P Global Ratings lowered the rating on Upland, Calif.-based San Antonio Regional Hospital to "BBB+" from "A-."
"The revised rating reflects limited operating flexibility as management moves into and operationalizes its new patient tower in fiscal [year] 2017, and as SARH adds new costs to its operating base which may take a couple of years to stabilize given the size and scale of the project," said S&P analyst Aamna Shah.
The outlook is stable.