Article: Fitch Downgrades St. Joseph Health Services of Rhode Island to 'BB-'; Outlook Revised to Stable.

Fitch Ratings has downgraded Rhode Island Health and Educational Building Corporation's $18.6 million series 1999 revenue bonds (St. Joseph Health Services of Rhode Island Issue; SJHS) to 'BB-' from 'BB'. Fitch has also revised the Rating Outlook to Stable from Negative.

The downgrade to 'BB-' reflects SJHS' weak liquidity position, continued operating losses, poor debt service coverage, and ongoing volume declines. As of July 31, 2009 (10-months unaudited), SJHS had approximately $14 million in unrestricted cash and investments, which equated to 30 days cash on hand, a 4.9 times (x) cushion ratio, and cash to debt of 77%. Since Fitch's last review in 2008, ...

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