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Money Talk

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Money Talk
 
Who’s up and who’s down 
Down
Greater Baltimore Medical Center
Rating: A
Outlook: Stable
Affected debt: $69.1 million
Agency: Standard and Poor’s Rating Service

Remarks: S&P lowered its long-term and underlying ratings to A from A+ on Maryland Health & Higher Educational Facilities Authority’s series 1993 and 2001 bonds, reflecting financial performance that failed to meet expectations and an overall credit profile more commensurate with an A rating than an A+ rating. 

 
Up
Lee Memorial Health System, Fort Myers, FL
Rating: A2
Outlook: Stable
Affected debt: $438 million
Agency: Moody’s Investors Service
Remarks: Moody’s upgraded to A2 from

A3 the long-term bond rating assigned to Lee Memorial Health System’s $438 million of rated debt. The outlook is revised to stable from positive at the higher rating level. The rating upgrade reflects two years of significant improvement to operating profitability.

 
UP
Cape Cod (MA) Healthcare
Rating: BBB+
Outlook: Stable
Affected debt: $113.7 million
Agency: Standard & Poor’s Ratings Services

Remarks: S&P raised its long-term rating to BBB+ from BBB on $12.7 million series 1998B bonds and its underlying rating to BBB+ from BBB on $101 million series C and 2004D bonds issued by the Massachusetts Health & Educational Facilities Authority. The higher rating reflects an assessment of Cape Cod Healthcare’s continued financial improvement as well as strides toward improved integration with the medical staff.

 
DOWN
West Penn Allegheny Health System, Pittsburgh
Rating: B2
Outlook: Negative
Affected debt: $748 million
Agency: Moody’s Investors Service
Remarks: Moody’s downgraded the bond rating for West Penn Allegheny Health System to B2 from B1, affecting $748 million of series 2007 fixed-rate bonds issued through the Allegheny County Hospital Development Authority. The outlook remains negative. Moody’s says the rating downgrade is due to significant and accelerating volume declines and significant execution risks and capital and operating costs related to the system’s strategy to downsize and restructure.
 

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