Moody’s Investors Service placed the Baa3 rating it assigns to Citrus Memorial Hospital’s debt on watch for possible downgrade last week.

The action applies to $41.2 million of Series 2002 bonds rated by Moody’s. It follows receipt of the hospital’s unaudited fiscal 2010 financial statements, which show that “operating income declined to a material loss of $6.2 million,” according to the agency. Moody’s noted that the negative 3.6% operating margin compares to a $5.2 million, or 2.8%, operating margin in fiscal 2009.

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