Franklin, Tenn.-based acute-care hospital operator Community Health Systems Inc. reported weaker-than-expected second-quarter results, highlighted by declining patient volumes and higher medical specialist expenses. Although the company is making progress with its divestiture plan, its margins have continued to decline, and leverage remains persistently high at about 6.8x. We are lowering our corporate credit rating on Community Health Systems to 'B-' from 'B'. The outlook is stable. At the same time, we are lowering our issue-level rating on Community's senior secured debt to 'B+' from 'BB-' and lowering our issue-level rating on Community's unsecured debt to 'CCC' from 'CCC+'. The recovery ratings on this debt remain '1' and '6', respectively. The stable outlook reflects our expectations that cash flow will remain
