Cybersecurity
Ransomware Attack on Hospital Shows New Risk for Muni-Bond Issuers
- The attack in part led to a breach of a covenant agreement
- The hospital spent $1 million in response to the attack
Photographer: Jan Strandstrm/Folio Images via Getty Images
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Hackers have finally done what bond issuers may have feared most from cyber criminals.
A ransomware attack on Pleasant Valley Hospital in West Virginia was partly responsible for the hospital’s breach of its covenant agreement, according to a notice to the hospital’s bondholders from the trustee, WesBanco Bank. It appears to be the first time a cyber attack triggered a formal covenant violation, according to research firm Municipal Market Analytics.