Hospital’s credit rating downgraded

By Nick Tabor, New Era Senior Staff Writer

Because of decreases in business, a small revenue base and a large debt load, a rating agency downgraded the bond credit rating of Jennie Stuart Medical Center this week from BBB+ to BBB.

This means the hospital may have to pay a higher interest rate if it needs to borrow money in the near future.

But Sam Brown, Jennie Stuart’s vice president of financial services, said it won’t affect rates the hospital pays on current loans.

“It really has no impact on our financials at all, currently,” Brown said Thursday. “It’s a little disappointing that we had the downgrade, but it’s happening to a lot of hospitals around the country.”

JSMC credit rating downgraded

Fitch Ratings, one of the three major credit rating agencies in the U.S., downgraded Jennie Stuart Medical Center's rating from BBB+ to BBB. Fitch's analysts cited declines in inpatient the hospital was rendering, a small revenue base, and a large debt load.

The downgrade apparently won't affect the hospital's finances for now. But if it needs to borrow money in the near future, this rating could lead to higher interest rates.

In addition to the story in Friday's paper, the analysts' report is available here as a PDF.