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Eisenhower Medical Center losses spur credit-rating downgrades

The Desert Sun, November 4, 2011

Citing a sagging bottom line and millions in losses, two of the nation's top financial ratings agencies have downgraded Eisenhower Medical Center's credit rating and are signaling that future downgrades could follow. Moody's Investors Service dropped the Rancho Mirage hospital's rating from Baa1 to Baa2, while at Fitch Ratings, the cut was from A- to BBB. Moody's downgrading was its second since July 2010, when the hospital's rating fell from A3 to Baa1. In both cases, the lower ratings mean that Eisenhower's $400 million in debt is still considered a moderate to good investment, but carries increasing levels of risk because of the hospital's weak finances.