Standard&Poor's Ratings Services lowered its rating and underlying rating (SPUR) to 'BBB-' from 'BBB' on the St. Charles Parish Hospital Services District No. 1, La.'s GO bonds and placed the ratings on CreditWatch with negative implications pending further review of updated financial information from the district. The lowered rating reflects a criteria change in Standard&Poor's approach to tax-secured hospital district debt. In cases where the credit of the hospital district is considered deeply speculative, the rating will be increasingly driven by the hospital's financial and operating profile. St. Charles' financial and operating profile is weak despite the presence of tax revenues, highlighted by a weak balance sheet and operating losses. Liquidity is also exceptionally weak, with
