S&P Global Ratings lowered its long-term rating to 'BBB+' from 'A-' on the Richmond Hospital Authority, Ind.'s series 2022, 2016B, and 2015A fixed-rate bonds issued for Reid Hospital (doing business as Reid Health). At the same time, we lowered our underlying rating (SPUR) to 'BBB+' from 'A-' on the series 2022 fixed-rate bonds. The outlook is stable. The rating action reflects our view of Reid's trend of accelerating operating losses and weak maximum annual debt service (MADS) coverage and commensurate balance sheet deterioration. The rating action also reflects our view of Reid's higher debt burden following its 2022 issuance for the construction of the Connersville Hospital, as well as execution risk associated with the project. Gross revenue secures the bonds.
