Fitch Ratings has downgraded Butler Health System's (BHS) Issuer Default Rating (IDR) and the rating on revenue bonds issued by the Butler County Hospital Authority on behalf of BHS, to 'BBB' from 'A'; Rating Watch Negative.
The multi-notch downgrade and rating watch negative reflect deficit operating and excess losses and negative EBITDA through the nine-months ended March 31, that will be sustained through the FYE, likely leading to an event of default under Butler's 12-month debt service coverage covenant under the MTI and for its debt obligations privately placed with Truist Bank.