...October 11, 2023 CHICAGO (S&P Global Ratings) Oct. 11, 2023--S&P Global Ratings lowered its long-term rating on Northern Hospital District of Surry County (NHDSC), N.C.'s (d/b/a Northern Regional Hospital) series 2017 revenue bonds to '##' from '##+'. The outlook is negative. "The lowered rating is the result of continued deterioration in NHDSC's financial profile, with a sustained decline in unrestricted reserves and only slightly narrowed operating losses as management effectuates turnaround measures," said S&P Global Ratings credit analyst John Kennedy. We anticipate NHDSC will violate its days' cash on hand covenant in fiscal 2023 (ended Sept. 30), though cash improvement is expected in fiscal 2024, largely due to one-time state funding. The negative outlook is underpinned by this reliance on external sources for cash, as well as further operating losses budgeted for next year. The negative outlook reflects the continued deterioration of NHDSC's financial profile, with an additional...
