NEW YORK (Standard&Poor's CreditWire) Jan. 19, 2000--Standard&Poor's today lowered its rating on California Health Facilities Financing Authority's $54.5 million hospital revenue bonds, issued for Downey Community Hospital, to triple-'B'-plus from single-'A'-minus. The outlook has been revised to negative from stable. The downgrade reflects: -- Poor financial performance over the past two fiscal years (1999 and 1998), generating weak coverage of maximum annual debt service (MADS), largely due to unfavorable capitation contracts; -- Increasing managed-care and reimbursement pressure; and -- A competitive service area, dominated by hospitals that are part of larger established systems. A lower rating is precluded by a strong balance sheet, evidenced by 366 days' cash on hand and 190% cash to total debt
