Standard & Poor's Ratings Services has revised its outlook to negative from stable and affirmed its 'BBB+' long-term rating on the $63.1 million series 2010C bonds issued by Massachusetts Development Finance Agency for Lowell General Hospital (LGH).
"The negative outlook primarily reflects our view of LGH's financial dilution following the acquisition of Saints Health System, which essentially eliminated the system's financial cushion at the same time it is opening a new patient tower, dealing with health care reform, and implementing financial and operating strategies associated with the acquisition," said Standard & Poor's credit analyst Cynthia Keller. "However, the rating affirmation reflects our positive opinion of the acquisition's long-term benefits and we believe that if LGH successfully meets its financial projections over the next one to two years, we could return the outlook to stable," said Ms. Keller.
