Louisiana Public Facilities Authority Franciscan Missionaries of Our Lady Health System; System

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 series 2017 bonds will be used to fund construction of a children's hospital on FMOLHS' flagship campus in Baton Rouge. 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. Although management has implemented a turnaround plan, we expect

...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 series 2017 bonds will be used to fund construction of a children's hospital on FMOLHS' flagship campus in Baton Rouge. 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. 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 also reflects FMOLHS' modest operating losses in fiscal 2016 and more significant losses in the nine-month interim...

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