CHICAGO - Chicago-based Resurrection Health Care's "sizeable" losses, which have eroded the Catholic system's liquidity and debt service coverage ratios, prompted Standard & Poor's yesterday to revise its outlook on the underlying BBB-plus credit to negative from stable.

The system's operating losses resulted in negative 5.2% margins in both fiscal 2008 and fiscal 2009 and a weakened debt service coverage ratio that was down to 1.3 times in fiscal 2009 from 2.4 times a year earlier. The action affects nearly $600 million of debt.

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