Bangkok--15 Jun--Standard & Poor's
Standard & Poor's Ratings Services lowered its long-term rating and underlying rating (SPUR) to 'BBB' from 'BBB+' on Grant County Public Hospital District No. 1, Wash.'s limited-tax general obligation (GO) debt issued on behalf of Samaritan Hospital. The outlook is negative.
The rating action reflects the district's:
Operating losses and a decline in revenues; and
Declining market share and some volume softness.
The ratings further reflect sound liquidity, a manageable direct debt burden, and management's efforts to contain costs.
Located in central Washington, 100 miles west of Spokane, Wash., the district covers about 35% of Grant County, including Moses Lake, Wash. The district's population is about 56,500; but the hospital's total service area covers 87,500 residents.
Samaritan is a 50-bed hospital in Moses Lake. Competition includes the next nearest health care facility, about 60 miles away in Wenatchee, Wash.
The negative outlook reflects the operating losses. However, adequate liquidity continues to support the rating. Should losses continue or accelerate, a lowering of the rating is likely. A return to positive operating performance and maintenance of liquidity could result in a stable outlook.
RELATED CRITERIA AND RESEARCH
USPF Criteria: Tax-Secured Hospital Debt, May 3, 2007
Complete ratings information is available to RatingsDirect on the Global Credit Portal subscribers at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.
Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Geraldine Poon, San Francisco (1) 415-371-5078
Chris Morgan, San Francisco (1) 415-371-5032