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Who's up and who's down

Up
Saint Mary's Hospital, Waterbury, CT
Rating:
Ba2
Outlook: Stable
Affected debt: $27.9 million
Agency: Moody's Investors Service
Remarks: Moody's upgraded the debt rating for Saint Mary's Hospital bonds to Ba2 from Ba3. The upgrade is attributed to three years of consistently profitable operating performance that has allowed Saint Mary's to rebuild cash and investment balances to adequate levels.

Neutral
Doctors Community Hospital, Lanham, MD
Rating:
Baa3
Outlook: Negative
Affected debt: $134.7 million
Agency: Moody's Investors Service
Remarks: Moody's has affirmed Doctors Community Hospital's Baa3 underlying and long-term ratings. The rating reflects the hospital's improved operating performance in FY 2009 and through six months FY 2010 and the completion in 2009 of most major construction projects. The negative outlook remains due to the system's high debt load and a plan of finance that will result in $24 million of additional debt and an expected cash payment to settle an interest rate swap by May 2011.

Down
Health Alliance of Greater Cincinnati, OH
Rating:
A2
Outlook: Negative
Affected debt: $122 million
Agency: Moody's Investors Service
Remarks: Moody's has downgraded the Issuer Rating for Health Alliance of Greater Cincinnati to A2 from A1. The downgrade reflects the impact of the separation of Christ Hospital and St. Luke's Hospital from the system, which resulted in a significant decline in unrestricted cash to modest levels and lower market share in a competitive market. Additionally, operating margins have declined from historically strong levels as the system absorbs startup costs of the new West Chester Medical Center and is experiencing larger losses at Drake Center.

Up
Lake Forest (IL) Hospital Foundation
Rating:
Aa2
Outlook: Stable
Affected debt: $71 million
Agency: Moody's Investors Service
Remarks: Moody's has upgraded the bond rating for Lake Forest Hospital to Aa2 from A3, reflecting a change in corporate structure and imminent change in bondholder security.

Karen Minich-Pourshadi

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