OU Medicine Inc., OK 2018B-C Bond Ratings Cut To 'BB-' On Cash Decline; Outlook Negative

DALLAS (S&P Global Ratings) June 17, 2022--S&P Global Ratings lowered its long-term rating on the Oklahoma Development Finance Authority's series 2018B tax-exempt fixed-rate bonds and series 2018C taxable fixed-rate bonds, issued for OU Medicine Inc. (OUMI), which now does business as OU Health, to 'BB-' from 'BB+'. In addition, we lowered our underlying rating (SPUR) on the insured maturities of the authority's series 2018B and 2018C bonds, also issued for OUMI, to 'BB-' from 'BB+'. The outlook on all ratings, where applicable, is negative. "The downgrade reflects OUMI's significant financial profile deterioration since last review, including below-expectation operating performance and substantial erosion of its already weak cash position," said S&P Global Ratings credit analyst Patrick Zagar. "Actual financial results beginning

...June 17, 2022 DALLAS (S&P Global Ratings) June 17, 2022--S&P Global Ratings lowered its long-term rating on the Oklahoma Development Finance Authority's series 2018B tax-exempt fixed-rate bonds and series 2018C taxable fixed-rate bonds, issued for OU Medicine Inc. (OUMI), which now does business as OU Health, to '##-' from '##+'. In addition, we lowered our underlying rating (SPUR) on the insured maturities of the authority's series 2018B and 2018C bonds, also issued for OUMI, to '##-' from '##+'. The outlook on all ratings, where applicable, is negative. "The downgrade reflects OUMI's significant financial profile deterioration since last review, including below-expectation operating performance and substantial erosion of its already weak cash position," said S&P Global Ratings credit analyst Patrick Zagar. "Actual financial results beginning in the final quarter of fiscal 2021 and continuing through interim 2022 contrast with our expectations at last review, which included improved profitability...

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