Money Talk

Who’s up and who’s down 

UP

Saint Barnabas Health Care System, West Orange, NJ

Rating: BBB-

Outlook: Stable

Affected debt: $160 million

Agency: Standard and Poor’s Rating Service

Remarks: S&P raised its long-term rating to BBB- from BB+ on New Jersey Health Care Facilities Financing Authority for Saint Barnabas Health Care System’s $208 million series 2006A and 2006B. The outlook is stable. The upgrade reflects sharply improved operating income, healthier balance-sheet metrics, and  a revised governance and management structure. 

DOWN

North Memorial Health Care, Robbinsdale, MN

Rating: Baa1

Outlook: Negative

Affected debt: $53.8 million

Agency: Moody’s Investors Service

Remarks: Moody’s downgraded to Baa1 from A3 the long-term bond rating assigned to North Memorial Health Care’s $53.8 million of outstanding Series 2005 bonds issued by the City of Robbinsdale, MN. Moody’s notes material erosion in financial performance for FY 2010 and unexpected changes in senior leadership. The negative outlook is being maintained due to Moody’s uncertainty that NMHC will be able to return operations to profitability or breakeven performance in FY 2011.

Stable

Hunt Memorial Hospital District, Greenville, TX

Rating: Baa1

Outlook: Stable

Affected debt: $11 million

Agency: Moody’s Ratings Service

Remarks: Moody’s has affirmed the Baa1 unenhanced rating assigned to Hunt Memorial Hospital District’s $11 million of outstanding Series 1998 variable-rate revenue bonds. Moody’s notes  HMHD’s leading market position, improved liquidity, and days cash on hand.

Up

West Jefferson Medical Center, Marrero, LA

Rating: BBB

Outlook: Stable

Affected debt: N/A

Agency: Standard and Poor’s Rating Service

Remarks: S&P revised its rating outlook to stable from negative and affirmed its BBB underlying rating on Jefferson Parish Hospital Service District No. 1, LA’s debt, issued for West Jefferson Medical Center. This reflects improved financial performance, maximum annual debt service coverage, and liquidity relative to debt in fiscal 2009 and for the nine months ended Sept. 30, 2010.