Moody’s Investors Service has downgraded to Baa3 from Baa2 Sparks Health System’s long-term rating on bonds issued by the Sebastian County, Ark., Public Health Facilities Board.
The outlook has been revised to stable from negative based on Moody’s belief that Sparks has sufficient liquidity to support debt service at the lower rating level.
A major concern of Moody’s is the maximum annual debt service coverage for the entire system, which was a weak 0.79 times in fiscal 2007, while coverage for the obligated group was an adequate 2.2 times.
