A new report is downgrading the bond rating of Butler Health System.
Fitch Ratings is a leading American credit agency and they recently issued a negative bond rating against the local health care group.
The group says the negative rating watch follows the violation of a loan agreement.
“The rating agency’s report is a straight forward review of our situation and is reflective of the challenges all providers are facing in today’s healthcare economics,” Butler Health System spokesperson Melissa Forster said in a statement. “We are addressing these issues in a prudent and productive manner.”
One of the stipulations included a requirement for Butler Health System to have a minimum of 90 days cash on hand.
If Butler Health System defaults on the loan, they may have to pay back the loan sooner than anticipated. It could also impact future borrowing for the organization.
Butler Health System has been suffering financially over the last couple of years, with a reported loss of $23 million in operating revenue in the second half of last year.
