Summary: Louisiana Public Facilities Authority Franciscan Missionaries of Our Lady Health System; System

S&P Global Ratings revised the outlook to negative from stable and affirmed its 'A+' long-term rating and underlying rating (SPUR), where applicable, on the Louisiana Public Facilities Authority's bonds issued for Franciscan Missionaries of Our Lady Health System (FMOLHS). The outlook revision reflects our view of FMOLHS' balance sheet, which will be depleted by the issuance of approximately $100 million to $125 million of debt in fiscal 2017. The outlook revision also reflects our view that the system's operating performance will remain stagnant, constrained by the system's costly conversion to Epic over the next two years and the somewhat weak economic fundamentals in each of its hospitals' markets. The 'A+' rating reflects our view of FMOLHS' solid enterprise profile and seasoned

...S&P Global Ratings revised the outlook to negative from stable and affirmed its 'A+' long-term rating and underlying rating (SPUR), where applicable, on the Louisiana Public Facilities Authority's bonds issued for Franciscan Missionaries of Our Lady Health System (FMOLHS). The outlook revision reflects our view of FMOLHS' balance sheet, which will be depleted by the issuance of approximately $100 million to $125 million of debt in fiscal 2017. The outlook revision also reflects our view that the system's operating performance will remain stagnant, constrained by the system's costly conversion to Epic over the next two years and the somewhat weak economic fundamentals in each of its hospitals' markets. The 'A+' rating reflects our view of FMOLHS' solid enterprise profile and seasoned management team. FMOLHS also saw modestly improved operating performance in fiscal 2015 and fiscal 2016 to date, although its maximum annual debt service (MADS) coverage remained below median levels for the...

Summary