Moody's Investors Service downgrades Memorial Hospital at Gulfport, Miss.'s rating to A3, affecting approximately $74 million of bonds.
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The outlook is changed to negative.
The downgrade reflects a significant decline in liquidity as a result of capital investments and increased accounts receivable in conjunction with the implementation of a new electronic medical record system (EMR).
Operating performance has also weakened with a negative 1.5% operating margin for the first six months of FY 2015.
These challenges are balanced with MHG's good market position as a large tertiary provider in its primary service area and conservative debt structure with all fixed rate debt outstanding.
