Standard & Poor's Ratings Services said it lowered its long-term rating to BB from BB-plus on Hopkins County Hospital District, Texas' $22.7 million series 2008 hospital revenue bonds.
The district does business as Hopkins County Memorial Hospital (HCMH). The outlook remains negative.
"The downgrade and negative outlook reflect our view of HCMH's continued, albeit reduced, operating loss in fiscal 2013 and significantly lower unrestricted reserves, which have been trending down for several years," said Standard & Poor's credit analyst Karl Propst.
More specifically, the BB rating reflects: the district's negative operating performance for the past four years and budgeted fiscal 2014 loss; the district's persistently light unrestricted reserves, which remain weak on a cash-to-debt basis; weaker volumes; a small revenue base and limited service area coupled with a high concentration of governmental reimbursement; and the district's high debt burden.
