NEW YORK - Standard & Poor's Ratings Services said it lowered its rating to A-minus from A on the Montana Facility Finance Authority's series 2010 revenue bonds issued on behalf of Kalispell Regional Medical Center (KRMC). The outlook is stable.

"The rating action reflects our assessment of a weakening in Kalispell's financial profile including thinner operational liquidity, which declined from a level that we had already considered somewhat low," said Standard & Poor's credit analyst Kenneth Gacka.

The rating action also reflects Standard & Poor's opinion of weakened operating performance since fiscal 2010. Also, the decline in these financial metrics paired with a general strengthening in metrics for many hospitals in the sector has also widened the gap between KRMC and the medians of comparably rated providers.

Certain of KRMC's metrics remain low compared to A-minus medians; however, the organization's strong enterprise profile with a dominant business position somewhat mitigates these credit weaknesses.

At Oct. 31, 2011, the organization had $85.7 million of long-term debt outstanding including the fixed-rate revenue bonds and about $26 million of notes payable.

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