Northern Hospital District of Surry County, NC 2017 Bond Rating Lowered Three Notches To 'B?; On Watch Negative

CHICAGO (S&P Global Ratings) Feb. 10, 2025--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 three notches to 'B' from 'BB', and placed the rating on CreditWatch with negative implications. "The lower rating is the result of continued deterioration in NHDSC's financial profile resulting in an expected violation of its debt service coverage (DSC) and days' cash on hand (DCOH) covenants in fiscal 2024 (ended Sept. 30)," said S&P Global Ratings credit analyst John Kennedy. However, the hospital is currently in the process of securing a waiver from the majority bondholder. "The CreditWatch placement reflects uncertainty regarding the waiver process and potential for further liquidity

...February 10, 2025 CHICAGO (S&P Global Ratings) Feb. 10, 2025--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 three notches to 'B' from '##', and placed the rating on CreditWatch with negative implications. "The lower rating is the result of continued deterioration in NHDSC's financial profile resulting in an expected violation of its debt service coverage (DSC) and days' cash on hand (DCOH) covenants in fiscal 2024 (ended Sept. 30)," said S&P Global Ratings credit analyst John Kennedy. However, the hospital is currently in the process of securing a waiver from the majority bondholder. "The CreditWatch placement reflects uncertainty regarding the waiver process and potential for further liquidity pressures," added Mr. Kennedy, "and reflects our view that there is a one-in-two chance the rating could be lowered over the next 90 days. We could lower the rating, potentially...

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