Standard & Poor’s last week lowered its rating to BB-minus from BB on the Rhode Island Health and Educational Facilities Building Corp.’s $10.6 million of Series 1994 bonds issued for Westerly Hospital.

The downgrade reflects an extremely high operating loss in 2007, coupled with continued losses in the year to date, although management has made progress in reducing the deficits, and the balance sheet continues to weaken in terms of declining liquidity and an aging physical plant, analysts said. At the same time, the outlook remains negative since the overall audited trend of operational and financial performance remains depressed.

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