Franciscan Missionaries of Our Lady Health System, LA Debt Ratings Lowered To 'A' On Weak Operating Results

CENTENNIAL (S&P Global Ratings) May 25, 2017--S&P Global Ratings lowered its long-term rating and underlying rating (SPUR), where applicable, to 'A' from 'A+' on Franciscan Missionaries of Our Lady Health System, La.'s (FMOLHS) outstanding debt. At the same time, S&P Global Ratings assigned its 'A' rating to the Louisiana Public Facilities Authority's $150 million series 2017 bonds, issued for FMOLHS. The outlook is stable. "The rating action reflects our view of FMOLHS' weak operating results in fiscal 2016 and through the first nine months of fiscal 2017, as the system incurred a number of operating issues," said S&P Global Ratings credit analyst Allison Bretz. "Although management has implemented a turnaround plan, we expect the system to continue to face significant

...CENTENNIAL (S&P Global Ratings) May 25, 2017--S&P Global Ratings lowered its long-term rating and underlying rating (SPUR), where applicable, to 'A' from 'A+' on Franciscan Missionaries of Our Lady Health System, La.'s (FMOLHS) outstanding debt. At the same time, S&P Global Ratings assigned its 'A' rating to the Louisiana Public Facilities Authority's $150 million series 2017 bonds, issued for FMOLHS. The outlook is stable. "The rating action reflects our view of FMOLHS' weak operating results in fiscal 2016 and through the first nine months of fiscal 2017, as the system incurred a number of operating issues," said S&P Global Ratings credit analyst Allison Bretz. "Although management has implemented a turnaround plan, we expect the system to continue to face significant operating challenges for the remainder of fiscal 2017 and into fiscal 2018." The rating reflects FMOLHS' modest operating losses in fiscal 2016 and more significant losses in the nine-month interim period. The system has...

Ratings Action