Norman Regional Health System, OK Bond Rating Lowered To 'BBB-' From 'BBB+' On Weak Financial Profile; Outlook Negative

CHICAGO (S&P Global Ratings) Dec. 14, 2023--S&P Global Ratings lowered its long-term rating to 'BBB-' from 'BBB+' on the Norman Regional Hospital Authority (NRHA), Okla.'s series 2016, 2017, and 2019 revenue bonds, issued for Norman Regional Health System (NRHS). The outlook is negative. The downgrade reflects continued weakening in the hospital's financial profile, including widening operating losses, contrasted with expected improvement at last review, that has contributed to days' cash on hand falling below 100 days, given that earnings deterioration is concurrent with elevated spending on NRHS' campus consolidation project. The negative outlook reflects the magnitude of recent operating losses, leading to challenged financial covenants and no remaining balance-sheet cushion, coupled with ongoing sector performance headwinds and the complexities of

...December 14, 2023 CHICAGO (S&P Global Ratings) Dec. 14, 2023--S&P Global Ratings lowered its long-term rating to '###-' from '###+' on the Norman Regional Hospital Authority (NRHA), Okla.'s series 2016, 2017, and 2019 revenue bonds, issued for Norman Regional Health System (NRHS). The outlook is negative. The downgrade reflects continued weakening in the hospital's financial profile, including widening operating losses, contrasted with expected improvement at last review, that has contributed to days' cash on hand falling below 100 days, given that earnings deterioration is concurrent with elevated spending on NRHS' campus consolidation project. The negative outlook reflects the magnitude of recent operating losses, leading to challenged financial covenants and no remaining balance-sheet cushion, coupled with ongoing sector performance headwinds and the complexities of onboarding major facility expansions. The negative outlook also reflects NRHS' deeply negative operations in recent quarters,...

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