Moody’s Investors Service on Tuesday placed the A3 rating on Tampa General Hospital’s debt on review for possible downgrade.
The hospital, located on the central west coast of Florida, has $370 million of debt rated by the agency.
Moody’s said it is reviewing the credit due to a “material deterioration in financial performance” during the first quarter of fiscal 2012, following a weaker year in 2011.
The rating agency said revenues declined by 3.5% during the interim period, while expenses grew by 2.1%, resulting in a $13.1 million operating loss in the first three months of fiscal 2012.
Operating cash flow was $2.2 million, resulting in “very weak” Moody’s-adjusted maximum annual debt-service coverage of 0.36 times.
“Management states that the downturn in financial performance is due to a first-quarter decrease in utilization as well as initial installation costs of a new electronic medical record system,” said analyst Sarah Vennekotter.
Moody’s said it expects to complete its review in the next 90 days.
