Standard & Poor's Ratings Services revised its outlook to negative from stable and affirmed its 'A' rating and underlying rating (SPUR) on Children's Hospital Los Angeles (CHLA), Calif.'s $340 million series 2004 A-B bonds, 2002 A-B bonds, and series 1999 and 1993 certificates of participation, issued by the California Statewide Communities Development Authority. CHLA is the preeminent specialty pediatric hospital in Southern California, but a challenging payer mix and a historic reliance on its significant fundraising prowess to support operations remain ongoing challenges. Significant operating losses in fiscal 2005 and a slower than expected turnaround effort through mid-year 2006 point to risk of a lowered rating if losses are not stemmed in the next year. Specific rating factors supporting the...
Companies mentioned in this report are:
- Children's Hosp Los Angeles
- California Statewide Communities Dev Auth
Action: Outlook: Negative
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