NEW YORK (Standard&Poor's) Jan. 28, 2009--Standard&Poor's Ratings Services revised its rating outlook to negative from stable on Lee Memorial Health System Board of Directors, Fla.'s bonds (LMHS), issued for Lee Memorial Health System. At the same time, Standard&Poor's affirmed its 'A' long-term rating, 'A' underlying rating (SPUR), and 'A/A-1' dual rating on LMHS's bonds. The outlook revision reflects our view of LMHS's considerably weaker operating results and cash flow than projected at the time of financing. Furthermore, according to management, LMHS's liquidity position continues to decline, partly due to capital spending and unrealized investment losses, as well as an inability to generate the expected necessary cash flow. While we believe LMHS benefits from its
