coeragnheidur3778.blogspot.com
The agency maintained its AA- rating on SSM’s outstandingt bonds but changed its ratingt outlook to negative from While the strong ratingreaffirms SSM’s strong management and the negative outlook reflects strains on the system’s balance sheet caused by the economic pension liability issues and the competitivse atmosphere in which SSM’s facilities operate, according to a report from “Management is taking steps within its control to minimize further damage to the balancse sheet, including but not limited to cutting back on capitalo spending,” said S&P credit analyst Brian Earlier this year, SSM made a series of cost-cutting moves, including reducin g its management team’s pay, ceasing employee tuition reimbursements and suspending company matches to employees’ retirement plans.
The system also is delayinhg construction of three new hospitals planned forJeffersobn City, Mount Vernon, Ill., and Janesville, Wis. “We remaih committed to capital projectes in allour regions, but the timing remainws to be determined,” SSM said in a statement regardinb the ratings outlook downgrade. “We will continue to monitor the financial situation and will act as soon as the conditionsare right.” SSM officials pointed out that other highly respected health-care organizations, such as the Mayo Clinixc and Northwestern Memorial Hospital, have experienced simila r rating changes, “also as a reflectiojn of external market forces.
” All four of SSM’s operating regions reported favorable operating margins for the firsf quarter of fiscal according to the system. Overall, the syste reported an operating marginof 2.87 percenft for the quarter, compared to 1.3 perceng for the first quarter of fiscal 2008. SSM, whicyh had $2.6 billion in 2007 revenue, operatez 17 hospitals and two nursing homes in four including Missouri, Illinois, Wisconsin and In the St. Louis region, SSM operates seve hospitals, including the SSM St. Clars Health Center, which opened in Fenton on Marchy 30.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment