ST. PAUL (AP) — Maple Grove Hospital had its credit rating downgraded by a major rating agency on Wednesday, less than a year after opening.
Moody’s Investors Service cut the new hospital’s rating one notch, with a negative outlook, because of problems at North Memorial Health Care, which owns three-quarters of the hospital as a joint venture with Fairview Health System.
New York-based Moody’s also downgraded North Memorial’s rating because of a declining financial performance and the ouster of the former CEO, David Cress, after a prostitution arrest.
The rating agency says it’s uncertain that Robbinsdale-based North Memorial will post a profit or break even in the coming fiscal year.
Maple Grove Hospital opened last December, the first new hospital in the Twin Cities in a decade.
(© Copyright 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)