Standard & Poor’s revised the outlook to stable from negative on about $179.1 million of Centra Health Inc.’s Series 2004 A-F bonds issued by the Lynchburg Industrial Development Authority, reflecting “substantially improved operating results in 2007.”

The Series 2004 bonds are auction-rate securities that Centra plans to restructure by July 2008, said Standard & Poor’s, the only agency rating the debt.

The A rating reflects Centra’s “dominant market position” within the primary service area of Lynchburg, analysts said.

Additional rating factors include an 82% market share within the primary service area highlighted by growing business volumes. Centra returned to solid operating profitability in 2007, generating sound debt service coverage of 4.2 times after a sizable operating loss in 2006. Liquidity increased through 2007 characterized by 28% growth in unrestricted cash equal to 159 days’ cash on hand as of Dec. 31, Standard & Poor’s said.

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