Fitch Ratings said it has downgraded to B from BB-minus the rating on $21,455,000 fixed rate bonds, series 1999, issued by Dickinson County Healthcare System, Mich.
The rating outlook is negative.
The bonds are secured by a pledge of net revenues, investment income, and bond funds under the indenture agreement.
The downgrade to B is driven by continued decline in unrestricted cash and investments, which totaled $7 million at June 30, 2014 compared to $10.7 million one year prior.
Liquidity metrics of 29.8 days cash on hand, 1.7x cushion ratio, and 27.4% cash to debt provides very limited cushion against negative operating variability. However, unrestricted cash and investments at July 31, 2014 were reported at $8.8 million, a 25% improvement from the prior month.
