DALLAS — The Comanche County Hospital District has lost its investment-grade rating from Standard & Poor’s as the rural health care facility in West Texas copes with a declining population and weak economy.
Analysts dropped the underlying rating on the district’s $12.3 million of 2004 bonds to B-minus from BBB on Wednesday.
“The rating downgrade reflects the district’s constrained financial situation, as evidenced by very limited cash and high leverage,” said analyst Karl Propst. “Additionally, the district continues to face operating challenges due to its small clinical staff, revenue cycle issues, and a problematic new information system implementation.”
The district used the 2004 bond issue to build a 38-bed, acute-care hospital that opened in July 2005. The new facility combined the operations of the former Comanche Community Hospital and DeLeon Hospital.
The bonds were originally insured by Syncora Guarantee Inc., but the insurance ratings have fallen to default levels.
“While the Series 2004 bonds are secured by and payable from ad valorem taxes, which partially mitigates the credit risks, the district has very limited flexibility to endure any volatility in its operations, which is the basis for lowering the rating to the B category,” Propst noted in his report.
Comanche County has a population of 13,924 and is a rural, agriculture-based county about 85 miles southwest of Fort Worth in west central Texas. Population density is 15 people per square mile, with nearly 30% of the workforce involved in agriculture. The population has fallen about 3.3% since the 2000 Census, according to the latest data for 2009. Per-capita income is 81% and 74% of state and national levels, respectively.
