NEW YORK - Moody's Investors Service said it has downgraded Fremont-Rideout Health Group, Calif.'s (FRHG) bond rating to A2 from A1.
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The outlook is negative at the lower rating level and FRHG's rating has been removed from Watchlist for possible downgrade.
The downgrade and negative outlook reflect FRHG's continued operating struggles since fiscal year (FY) 2007 (3.5% operating cash flow margin in FY 2009), which have accelerated through six months FY 2010 (1.6% operating cash flow margin). The action affects approximately $64.8 million of rated debt.
