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New York Hospital’s Bonds Slashed to Junk After Cyberattack

Aug. 4, 2021, 7:31 PM

An upstate New York hospital had its credit rating cut to junk by S&P Global Ratings after it was hit by a cyber attack, a rare downgrade tied to the risks posed by rising online crime.

S&P dropped the rating on municipal bonds issued for Samaritan Medical Center in Watertown, New York, by two notches to BB, two steps below investment grade.

The downgrade comes after years of losses worsened its financial condition despite federal aid extended since the onset of the pandemic. S&P said a 2020 malware attack delayed its cash collections and triggered a drop in reserves large ...