Money Talk

Who's up and who's down

Down
Saint Luke's Health System, Kansas City, MO
Rating: A1
Outlook: Negative
Affected debt: $489 million
Agency: Moody's Investors Service
Remarks: The outlook is revised from stable based on modest operating performance in fiscal years 2007 and 2008, weakened liquidity position due to challenges in the equity markets, and thin debt coverage ratios.

Down
Charleston Area Medical Center, Charleston, WV
Rating: A2
Outlook: Negative
Affected debt: $181.83 million
Agency: Moody's Investors Service
Remarks: Outlook revised from stable due to decline in liquidity and the lower-than-anticipated financial performance in FY 2008, resulting in weaker debt service coverage on a rising debt burden.

Down
North Shore-Long Island Jewish Health System, Manhasset, NY
Rating: Baa1
Outlook: Stable
Affected debt: $1.4 billion
Agency: Moody's Investors Service
Remarks: The rating downgrade from A3, despite an improvement in recent operating performance, is reflective of the impact of the additional debt on an already weak balance sheet for a system of this size.

Up
South Central Regional Medical Center, Madison, MS
Rating: BBB
Outlook: Stable
Affected debt: $33 million
Agency: Standard & Poor's
Remarks: The revised outlook from negative and affirmation reflects stronger financial performance and debt service coverage with improved liquidity.

—Les Masterson