Moody's downgraded Molina Healthcare Inc. over poor financial results in the second quarter and its company-wide restructuring.

The agency downgraded the senior unsecured debt ratings of the company to B2 from Ba3 and the insurance financial strength ratings of six of the company's subsidiaries to Ba1 from Baa3.

The subsidiaries are Molina Healthcare of California, Molina Healthcare of Michigan Inc., Molina Healthcare of New Mexico Inc., Molina Healthcare of Ohio Inc., Molina Healthcare of Texas Inc. and Molina Healthcare of Washington Inc.

Moody's outlook on the company and its subsidiaries remains negative.

The agency's downgrade with a continued negative outlook on Molina and its rated operating subsidiaries reflects the company's constrained financial flexibility as well as uncertainty regarding the execution of its restructuring and profit improvement plan, Moody's said.

On Aug. 2, the company reported it was withdrawing its full-year guidance for 2017 and announced a company-wide restructuring following a second-quarter adjusted net loss of $225 million. Its shares plummeted almost 11% in the same week.

To help fund its restructuring plan, the company indicated that it intends to draw down $300 million on its revolving credit facility, which would increase leverage to nearly 63% on a pro forma basis, Moody's wrote. Given the broad scope of its remediation efforts, however, the rating agency views Molina's success as "uncertain."

However, the rating agency wrote that it would affirm its ratings with a stable outlook if the company successfully implements its restructuring plan as measured through improved operating margins, remediates its material weakness and maintains stable earnings including marketplace results.