S&P Global Ratings said it revised its outlook to negative from stable and affirmed its A-plus long-term rating on Missouri Health & Educational Facilities Authority's series 2006, 2011, and 2015B bonds issued for St. Luke's Episcopal-Presbyterian Hospital (St. Luke's).
"The outlook revision reflects our view of St. Luke's softening profitability in fiscal year 2016 and continued margin compression year to date for fiscal 2017, which underperformed budget expectations," said S&P credit analyst Wendy Towber. "The negative outlook further reflects our view of St. Luke's departure from a multi-year trend of stable to strengthening financial metrics, which was partly due to weaker net patient revenue growth and softer volumes."
Management indicates it has no significant debt plans in the near term.
St. Luke's is located in Chesterfield, Mo., in western St. Louis County. It operates a 493-licensed-bed (391-staffed-bed) acute care facility.
