Standard & Poor's Ratings Services revised the outlook to negative from stable on Brazoria County Health Facilities Development Corp., Texas' series 2004 bonds, issued for Brazosport Regional Health System (BRHS). At the same time, Standard & Poor's affirmed its 'BBB-' long-term rating and underlying rating (SPUR) on the bonds. In addition, Standard & Poor's assigned its 'BBB-' long-term rating to the corporation's series 2012 revenue and refunding bonds, issued for BRHS. The outlook on the series 2012 bonds is negative.

"The negative outlook and affirmed ratings reflect our view of Brazosport's balance sheet, which at March 31, 2012 exhibited adequate capacity to incur the additional debt at the existing rating level, as well as the hospital's operating stresses during the past two years and for the year to date, which have resulted in operating and excess losses in fiscal 2011 and tepid operating and excess performance for fiscal 2012 year to date," said Standard & Poor's credit analyst Karl Propst.

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