CUSIP 44816RAP7
- ISIN: US44816RAP73
- Entity Name: City of Hutchinson, Kansas
- Sector: Municipal
- Announcement Date: *****
- Effective Date: *****
- Issue Date: *****
- Maturity Date: *****
- Country of Issuer: *****
- Region: N.Amer
- Issue Currency: *****
- CA Type: Rating Downgrade
- News: Moody`s Investors Service has downgraded Hutchinson Regional Medical Center, Inc.`s (KS) revenue bonds to Baa3 from Baa2 affecting approximately $36 million of rated debt. The outlook is revised to negative from stable. RATINGS RATIONALE The downgrade to Baa3 reflects Hutchinson Regional Medical Center`s (HRMC) significant and unexpected deviation from budgeted performance in fiscal 2018 and expected weaker performance going forward. Performance will be challenging to improve to historically higher levels given significant write-downs, payor reimbursement pressures, volume instability and physician shortages. HRMC`s strategic alignment with a large and independent multi-specialty physician group will provide the organization access to physicians and clinical resources, but will also present competition for outpatient services as inpatient volumes decline. HRMC will sustain its distinctly leading market position as the Medicare-designated Sole Community Provider in its primary service area and has adequate liquidity metrics relative to debt and daily operations. RATING OUTLOOK Revision of the outlook to negative reflects weak operating performance in 2018 without a longer track record of improvement, declines in liquidity, and turnover in key management positions, creating uncertainty for the hospital. The inability to show positive operating performance traction, meet budgeted projections, stabilize volumes, or further declines in liquidity will likely pressure the rating further.
- Description: *****
- Bond Document: https://www.bondpdf.com/
- Latest Corporate Actions: https://www.CAalerts.com/credit-corporate-action/ISIN/US44816RAP73
