NEW YORK - Standard & Poor's Ratings Services revised its outlook to stable from negative and affirmed its BBB-plus long-term rating on the debt issued by Illinois Educational Facilities Authority for CGH Medical Center (CGH).
"The outlook revision reflects our view of CGH's improved operating performance in fiscals 2009 and 2010 and its strong business position," said Standard & Poor's credit analyst Antionette Maxwell. "Maintenance of the current rating level will largely depend on improved operating margins and incremental growth in cash reserves."
"A higher rating would likely result in CGH ability to rebuilt its liquidity and demonstrate the improved performance going forward. A lower rating could be possible if earnings deteriorate from the current levels," Maxwell said.
CGH (99-staffed beds) is located 120 miles west of Chicago in Sterling, Ill. As the only provider of acute-care services in its primary service area, CGH has been able to maintain its strong market position. Competition is limited to a similar-sized hospital about 13 miles away.
