Standard & Poor's last week raised the Community Hospital of Ottawa's credit to A-minus from BBB-plus in conjunction with the sale of $16.5 million of bonds.
The upcoming deal, being sold on the hospital's behalf by the city of Ottawa, refunds $12.5 million of debt sold in 1994, with the remainder providing new money for capital projects involving the hospital's emergency room and outpatient services area. The previous bonds were sold through the Illinois Health Facilities Authority.
Analysts attributed the upgrade to the hospital's 14th consecutive year of positive operating income, stable liquidity, and a good market position as the sole community hospital in its region.
However, Standard & Poor's analysts said a higher rating is precluded by the hospital's small medical staff, a weaker-than-average economic base, and a restrictive payor mix, with Medicare and Medicaid recipients accounting for 55% of gross revenues.
The 111-bed hospital is located about 85 miles southwest of Chicago.
