Standard & Poor’s last week stripped Proctor Hospital of its investment-grade rating, downgrading the facility to BB-plus from BBB-minus due to three years of declining operations that have hurt its debt-service-coverage ratios.

The hospital’s outstanding debt issued in 2006 was sold through the Illinois Finance Authority. Analysts said Proctor also has been hurt by a weakening market position. They expressed concerns about the risks posed by the hospital’s variable-rate debt exposure and renewal of its letter of credit.

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