NW Hospital Slips a Notch

Moody's Investors Service has downgraded Northwest Community Hospital in suburban Chicago one notch to A2 following fiscal 2011 results that fell short of budgeted projections.

The action affects $320 million of rated debt issued through the Illinois Finance Authority.

The downgrade "follows unfavorable financial performance in fiscal year 2011, which, while better than fiscal year 2010, fell notably short of the 2011 budget," Moody's wrote.

"The downgrade also reflects NCH's multi-year departure from its historic financial profile that had included exceptional margins and ample cash resources relative to debt."

The rating is supported by solid demand of more than 24,000 annual admissions, still healthy absolute liquidity and solid socio-economics of the service area.

Moody's said it believes NCH will improve operations in fiscal 2012 due to management's proactive strategies to address revenue and institute financial rigor to the operations.

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Healthcare industry Illinois
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