Projo Biz Blog

Standard & Poor's Ratings Services revised its outlook to "stable" from "positive" on the 'BB' rating of Rhode Island Health & Educational Building Corp.'s series 1998 revenue bonds, issued for Roger Williams Hospital.

The rating actions reflect Roger Williams' stabilized financial position with hospital management reporting close to break-even results for fiscal 2007, through the first nine months of fiscal 2008, and more than likely for fiscal 2009.

In addition, hospital managers are involved in early affiliation discussions with another provider in the Providence area, S&P said.

"We believe Roger Williams' management team will continue to improve its financial profile," said Standard & Poor's credit analyst Jennifer Soule. "If Roger Williams' financial position were to improve or deteriorate significantly over the next year to two years, we would consider raising or lowering the rating accordingly."

Roger Williams' fiscal 2007 audited results reflect a modest $238,000 operating loss, excluding investment income. The results were significantly stronger than the $1.6 million operating loss and $1.7 million excess loss reported in fiscal 2006. Management attributes its financial improvement to tight expense controls, revenue enhancement initiatives, and a renewed relationship with its physicians.

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