Moody's Investors Service said it has downgraded to Baa3 from Baa1 the rating on Blue Mountain Hospital District, Ore.'s outstanding long-term general obligation debt totaling approximately $4.5 million.
The outlook is negative.
The downgrade reflects the district's very narrow cash position and its recent history of poor operating performance. The small size of the hospital's revenue base makes it particularly vulnerable to operating pressures, including decreased utilization and staff turn-over.
The rating also incorporates the district's small tax base, the strong security of the bonds (which are secured by a dedicated levy of local property tax revenues segregated from the district's operations) and the fact that hospital districts in Oregon are unable to seek Chapter 9 bankruptcy protection.
The negative outlook reflects the district's particularly weak financial position, and its ongoing operating challenges.
