Money Talk: January 2011

Who's up and who's down

UP

Sheridan Healthcare, Sunrise, FL
Rating: B
Outlook: Positive
Affected debt: $160 million
Agency: Standard and Poor's Rating Service
Remarks: Physician outsourcing provider Sheridan Healthcare Inc. will be using funds from a proposed $160 million incremental term loan B to fund acquisitions. S&P affirmed a B corporate credit and existing issue-level ratings. The outlook was revised to positive from stable, reflecting the company's more disciplined financial policy.

Up

Christiana Care Health Services, Newark, DE
Rating: Aa3/VMIG1
Outlook: Stable
Affected debt: $100 million
Agency: Moody's Investors Service
Remarks: Moody's has assigned Aa3/
VMIG1 ratings to Christiana Care Health
Services' $75 million of Series 2010B variable-rate demand bonds and $25 million of Series 2010C
variable-rate demand bonds to be issued by the Delaware Health Facilities Authority. Moody's expects that CCHS intends to incur up to $27.2 million of additional parity debt through a bank-qualified borrowing.

Down

St. Peter's University Hospital, New Brunswick, NJ
Rating: Baa3
Outlook: Negative
Affected debt: $101 million
Agency: Moody's Ratings Service
Remarks: Moody's assigned a Baa3
rating to Saint Peter's University Hospital's $100.925 million of Series 2010 fixed-rate revenue bonds to be issued by the New Jersey Health Care Facilities Financing Authority. Moody's downgraded the rating to Baa3 from Baa2 on $166.1 million of rated debt to remain outstanding. The outlook is revised to negative from stable based on a material decline in operating performance through the first nine months of fiscal year 2010.

Down

Westerly (RI) Hospital Healthcare
Rating: BB-
Outlook: Negative
Affected debt: $9.32 million
Agency: Standard and Poor's Rating Service
Remarks: S&P revised its outlook to negative from stable on Rhode Island Health and Educational Facilities Building Corp.'s $9.32 million series 1994 bonds, issued for Westerly Hospital. The BB- rating was affirmed; however, S&P believes Westerly's financial profile is weak overall, with volatile financial performance in recent years.