S&P lowers Hospital Infrastructure secured debt

S&P said it lowered the rating on Hospital Infrastructure Partners Partnership's senior secured debt one notch to BBB+ from A-.

The rating remains on CreditWatch with negative implications, where it was placed in May.

The decision to lower the rating is based on an opinion that the project's operations are not commensurate with those of A- ratings due to heightened operational risk and, seemingly, a management response to the ongoing issues that to date has not been able to rectify concerns with several of the key hospital operating systems, S&P said.

These issues have led to contractual breaches, but project cash flow remains unaffected because a third-party service provider is absorbing deductions, the agency said.

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