NEW YORK - Moody's Investors Service said it has assigned a Baa1 rating to Lowell General Hospital, Mass.'s (LGH) $115 million of Series 2010C and D bonds to be issued by the Massachusetts Health & Educational Facilities Authority.
The Baa1 rating is a downgrade from A3 due to LGH's significant increase in debt that will result in a much weakened balance sheet and debt measures.
The outlook is stable. At this time, Moody's downgraded to Baa1 from A3 the rating on $14.3 million of debt to currently outstanding.
The Series 2010D bonds will be variable rate demand obligations and are expected to be supported by a letter of credit from JPMorgan Chase Bank, N.A. rated Aa1/P-1) and evaluated using the joint support rating methodology, which will be assigned a joint support rating separately.
