Bangkok--17 Jun--Standard & Poor's
Standard & Poor's Ratings Services lowered its long-term rating to 'A-' from 'A' on King County, Wash.'s series 1998A and 1998B hospital system revenue bonds, issued for King County Public Hospital District No.2 (doing business as Evergreen Hospital). The outlook is negative.
"The lowered rating reflects the district's generally weaker financial profile combined with softer utilization that has resulted in negative operating results in the interim period through April 30, 2010," said Standard & Poor's credit analyst Antionette Maxwell. "The interim results are weaker than budget and weaker compared to the same period a year ago."
"Additionally, Evergreen has sizable capital plans in excess of $150 million during the next five years, which would require a considerable improvement in operations to support or, if operations remain at recent levels, then management may decide to draw down its existing reserves to support the capital plan or to defer certain projects," Ms. Maxwell said.
Evergreen Healthcare, located in Kirkland, Wash. (approximately 16 miles from downtown Seattle), provides comprehensive medical-surgical services, maternity and neonatal services, radiation oncology, diagnostic imaging, laboratory and related ancillary services. Evergreen Healthcare also operates primary care group practices, a freestanding inpatient hospice unit, the Booth Gardner Parkinson's Care Center, the Multiple Sclerosis Center, and the Evergreen Home Health Services, a comprehensive home health agency that serves patients throughout King and South Snohomish counties.
RELATED CRITERIA AND RESEARCH
USPF Criteria: Not-For-Profit Health Care, June 14, 2007
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Analyst Contacts:
Antionette W Maxwell, Chicago (1) 312-233-7016
Kenneth T Gacka, San Francisco (1) 415-371-5036
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