NEW YORK - Moody's Investors Service said it has downgraded to Ba2 from Ba1 the long-term bond rating assigned to Proctor Hospital, Ill.'s $22.5 million of outstanding bonds issued by the Illinois Finance Authority. The outlook is negative.
The downgrade to Ba2 from Ba1 is based on Proctor's decline in operating performance and balance sheet position, a trend driven by the hospital's modest market share in Peoria's highly competitive service area.
Proctor maintains very limited headroom on its debt covenants, which is a cause for concern.
