Memorial Hospital in York, Pa., had its bond rating lowered from BBB- to a speculative BB+ by Standard & Poor's Corp. for failing to be profitable and meet other projected performance levels.
Standard & Poor's said the hospital lost $1.1 million on operations and posted a -2.24% profit margin in 1995. Those negatives are offset by the 150-bed hospital's low-debt burden and good-debt coverage, the New York-based rating agency said. The downgrade affects $5 million of hospital revenue bonds.
Standard & Poor's also lowered the rating on $14 million of bonds issued for Community Hospital, Springfield, Ohio. The downgrade to BBB+ from A reflects "heightened competitive pressures, weakened liquidity from investment losses and reduced earnings."