Feb 22 Standard & Poor's Ratings Services on
Friday said it cut the Good Samaritan Hospital of Lebanon,
Pennsylvania's revenue bonds ratings, series 2004 and 2002, by
three notches to B-plus from BB-plus, with a stable outlook.
"We based the downgrade on what we view as persistent high
operating losses, leading to thin coverage of maximum annual
debt service," said Standard & Poor's credit analyst Liz
Sweeney. She added that the operating losses will soon begin to
erode the hospital's unrestricted reserves "which to date have
been stable because of rising investment markets and limited
capital spending," Sweeney added.
Operating income briefly improved in 2011, but it reverted
to losses in fiscal 2012 when the hospital had its eighth
operating loss in the past 10 years, the rating agency said in a
S&P said the stable outlook reflects the hospital's
balance-sheet, enabling it to withstand operating losses at the
current level for the next year or two.