White County Medical Center, Ark., Revs Raised to A-Minus by S&P

Standard & Poor's Ratings Services said it raised its long-term rating to A-minus from BBB-plus on White County, Ark.'s $9.9 million series 2006 and $4.3 million series 2005 fixed-rate revenue bonds issued for White County Medical Center.

The outlook is stable.

"The raised rating reflects our view of WCMC's growth in unrestricted liquidity driven by strong operating performance, which generated solid cash flows, coupled with limited capital expenses in fiscal 2012," said Standard & Poor's credit analyst Karl Propst.

In addition the rating reflects the agency's opinion of WCMC's robust maximum annual debt service coverage of more than 11x, dominant market share as the county's sole community hospital, prudent management team, and very light debt levels.

Despite WCMC's strong overall financial profile, credit factors such as high reliance on a small number of admitters, a trend of declining inpatient admissions, a relatively high concentration of governmental reimbursement, and uncertainties associated with health reform currently preclude a higher rating.

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