SMITH'S RESEARCH & GRADINGS

Bond Infusion Helps Norman Hospital Off Life Support

It looks as though Norman Regional Health System (NRHS) will get a $40 Mln lifeline after defaulting on its Sept. 1 debt service payment.

The missed payment came just one day after S&P lowered NRHS’s Series 2016, 2017 and 2019 revenue bonds to ‘CC’ from ‘CCC’ and placed them on CreditWatch with negative implications. S&P said a nonpayment or late payment was a “virtual certainty” and warned that a missed or delayed September 1 payment would result in a downgrade to ‘D.’

And they did.

On Sept. 9, S&P lowered its long-term rating to ‘D’ (default) from ‘CC’ and removed the rating from CreditWatch.

S&P said, “The outlook is not meaningful.”… Read More

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