The Charleston Area Medical Center, West Virginia’s largest medical provider, was put on watch for a possible downgrade last week by Moody’s Investors Service. The A2-rated hospital has $307 million of debt outstanding.
The negative watch reflects the hospital’s weaker-than-expected operating performance for fiscal 2010 through Sept. 30, accoridng to Moody’s. The rating agency said CAMC’s key performance indicators all compare “unfavorably to similarly rated organizations.”
The 961-bed facility last issued debt in August 2009 when the A2 rating was assigned by Moody’s.
CAMC sold 127.4 million of variable-rate revenue bonds in June 2008, which were rated AA-minus/A-1-plus by Standard & Poor’s. The variable-rate bonds are backed by a letter of credit from Branch Banking & Trust Co. that is expected to expire on June 19, according to Standard & Poor’s.
