Standard & Poor's Ratings Services said it has lowered its long-term rating on Comanche County Hospital Authority (CCHA), Okla.'s revenue refunding bonds issued for Comanche County Memorial Hospital (CCMH) to BB-plus from BBB-minus.
The outlook is stable.
"The downgrade reflects our view of CCHA's negative operating trend, light-but-adequate coverage, and constrained balance sheet," said Standard & Poor's credit analyst Karl Propst.
The agency assesses CCHA's enterprise profile as "strong" and its financial profile as "vulnerable" reflecting the hospital's sound competitive position, highlighted by what it views as a capable new senior leadership team and the hospital's dominant primary service area market share.
The assessment also reflects the hospital's elevated leverage, much weaker operating results for the past two fiscal years, and its just adequate debt service coverage at maximum annual debt service (MADS), S&P said.
