MOODY'S ASSIGNS Baa3 RATING TO DOCTORS COMMUNITY HOSPITAL'S (MD) $83 MILLION OF SERIES 2010 FIXED RATE REVENUE BONDS; Baa3 PARITY RATING AFFIRMED; OUTLOOK REMAINS NEGATIVE

Posted on: April 20, 2010, 9:52 am

NEW YORK, Apr 20, 2010 -- Moody's Investors Service has assigned a Baa3 long-term rating to Doctors Community Hospital's (DCH) $83 million of Series 2010 fixed rate revenue bonds. Concurrent with this action, we are affirming DCH's Baa3 rating on bonds as listed at the conclusion of this report. The rating outlook remains negative reflecting DCH's exposure to a swap that is expected to be terminated by May 1, 2011, which will stress the system's already modest liquidity position. Our rating affirmation assumes that DCH will market the Series 2010 fixed rate bonds successfully and remove all bond put risk from the organization's balance sheet, which in our opinion is a favorable credit factor. Our analysis factors the financial performance of the entire DCH system, including the Doctors Community Hospital Foundation, Inc. (Foundation), Doctors Community Hospital Sleep Center, LLC (Sleep Center), Doctors Regional Cancer Center, LLC (Cancer Center), and Doctors Community Health Ventures, Inc. (Health Ventures). DCH represents approximately 95% of system assets and 95% of system operating revenue...

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