S&P down­grades Beebe based on al­le­ga­tions about doc­tor

Modern Healthcare - - Late News -

Stan­dard & Poor’s down­graded Beebe Med­i­cal Cen­ter, Lewes, Del., 10 notches to a junk CCC rat­ing from a solid BBB+ in re­sponse to law­suits con­cern­ing a physi­cian un­der in­dict­ment over al­leged sex­ual abuse. Earl Bradley, a pe­di­a­tri­cian in Lewes, Del., was in­dicted in lateFe­bru­ary on al­le­ga­tions of sex­u­ally abus­ing more than 100 pa­tients be­tween 1998 and 2009. At dead­line, Beebe Med­i­cal Cen­ter had not re­sponded to a re­quest for com­ment. Stan­dard & Poor’s said li­a­bil­ity from the law­suits could force the 133-bed hospi­tal into bank­ruptcy. The New York rat­ings agency said it’s un­cer­tain if Beebe Med­i­cal Cen­ter will de­fault on debt sold to short-term in­vestors, which will force the hospi­tal to rapidly pay off the loans. Roughly $36 mil­lion of the hospi­tal’s out­stand­ing $80.9 mil­lion in debt are bonds sold to short-term in­vestors, ac­cord­ing to Moody’s In­vestors Ser­vice, which rates the hospi­tal Baa1 and placed it on watch for a down­grade. Fitch Rat­ings, which rates the hospi­tal A-, also placed the hospi­tal on watch for a down­grade.

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