Standard & Poor's revised Newport Hospital's outlook to negative from stable last week, citing an unexpected increase in operating losses. The change affects $24.9 million of bonds issued in 1999 by the Rhode Island Health and Educational Building Corp. on behalf of the hospital. Standard & Poor's rates the debt A.
"The negative outlook reflects concern about the higher operating loss and negative cash flow in 2009," Standard & Poor's credit analyst said Cynthia Keller-Macdonald in a press release. "While we expect some level of losses in the near future, they need to be lower and cash flow needs to be positive to maintain liquidity."