Decatur, Texas-based Wise Health System, which is due to be acquired by a subsidiary of Nashville, Tenn-.based hospital giant HCA Healthcare, was downgraded three notches amid "very weak" operating performance, Fitch said Sept. 29.
The move to "B+" from "BB+" applies to both the system's default rating and that on a series of bonds. Wise Health was also placed on a negative rating watch.
Fitch's decision followed that of S&P Global, which downgraded Wise Health five notches Sept. 15.
The three-hospital system is the target of Dallas-based Medical City Healthcare. Wise Health must pay for any outstanding debt obligations with proceeds from the sale if it goes ahead, Fitch said in its note.