Bangkok--20 Feb--Standard & Poor's
SAN FRANCISCO (Standard & Poor's) Feb. 19, 2014--Standard & Poor's Ratings Services revised its outlook to stable from negative and affirmed its 'BBB' long-term rating on West Park Hospital District, Wyo.'s existing debt.
"In our view, although West Park's good cash flow and sound business position continue to be credit strengths, operating margins have dipped from high historical levels but remain adequate for the rating level," said Standard & Poor's credit analyst Geraldine Poon.
We expect West Park will issue an additional $10 million of long-term debt to fund the final phase of major campus construction; while we anticipate that West Park can absorb the additional debt at this rating level, we will continue to monitor financial results relative to the pro forma balance sheet. Management continues to work to recruit a neurosurgeon in the near term, but we view this as a continued credit risk, particularly given the extended length of the current vacancy. Although we have viewed this vacancy as a short-term operating disruption, recent operating results have been adequate for the rating level. The district's financial profile and history of operations also provide credit stability, in our view.