Article: Standard & Poor's Cuts Catholic Healthcare West, CA Bond Rating to 'A'.

NEW YORK, Oct. 28 /PRNewswire/ -- Standard & Poor's today assigned its single-'A' rating to $597.48 million in health facility revenue bonds issued for Catholic Healthcare West, Calif. (see list below). This represents a downgrade from Standard & Poor's previous single-'A'-plus rating on Catholic Healthcare West.

The downgrade reflects:

-- Declining financial performance, most severely affected by increased

costs in Catholic Healthcare West's Shared Business Services project

and negative impact from capitated contracts and physician investments;

-- Instability in key markets due to capitation and competitive factors,

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