Standard & Poor’s lowered its rating on New Hampshire Health and Educational Facilities Authority’s Series 2003B revenue bonds, issued for Elliot Hospital, one notch to BBB-plus from A-minus.
The rating agency attributed the move to the hospital’s pro forma debt and liquidity ratios that fall well outside Standard & Poor’s medians for an A category credit. The outlook is stable.
The agency also assigned a BBB-plus long-term rating and stable outlook to the New Hampshire Business Finance Authority’s $130 million of Series 2009A revenue bonds that were issued for Elliot Hospital.
Through fiscal 2009, Elliot’s operating performance improved slightly over fiscal 2008 results but fell just short of management’s budgeted expectations for the year.
Operating performance through the first three months of fiscal 2010 — the interim period through Sept. 30, 2009 — reflected a greater level of improvement; hospital management’s projections through fiscal year-end 2010 and beyond appear favorable, according to Standard & Poor’s.
The stable outlook reflects Elliot’s improved financial results through fiscal 2009 and interim fiscal 2010, as well as management’s strength and focused strategic plan.
The rating action affects roughly $134 million of debt outstanding.