Moody’s Investors Service stripped Proctor Hospital of its investment grade rating recently, lowering the credit to Ba1 from Baa3 and warning of further action by assigning a negative outlook due to a decline in operating performance since fiscal 2007.

The downgrade also is due to the hospital’s weakened liquidity position and variable-rate demand obligation exposure on $17.5 million of bonds from a 2006 issue. Proctor has $22 million of fixed-rate bonds outstanding from a 2006 issue that are affected by the downgrade. The variable-rate bonds do not carry an underlying rating.

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