Munroe Regional Health System, Fla., Downgraded to Baa1 by Moody's

Moody's Investors Service said it has downgraded to Baa1 from A3 the bond rating assigned to Munroe Regional Health System, Fla.'s $61.3 million of rated debt issued by the Marion County Hospital District.

The outlook is stable.

The downgrade to Baa1 from A3 reflects poor operating results and flat absolute liquidity in FY 2012, driven by the decline in market share and admissions and Medicaid cuts.

FY 2012 performance continues a trend of erratic financial history with better financial performance in FY 2011 and FY 2010 which followed weaker performance in FY 2009 and FY 2008.

These trends are offset by limited direct and comprehensive debt obligations, multiple years of debt pay down and a proactive management team and board that will soon select one of two for-profit finalists for a long-term lease arrangement in order to fund MRHS' capital needs.

The stable outlook reflects improved volumes and financial performance during the first four months of FY 2013, with multiple unbudgeted revenue additions expected to continue through FYE 2013 and into the final lease agreement.

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER