Standard&Poor's Ratings Services lowered its rating on Maryland Health and Higher Education Facilities Authority's bonds, issued for University of Maryland Medical System (UMMS), to 'A' from 'A+'. The lowered rating reflects a sizeable debt issuance that nearly doubles UMMS existing debt to $1 billion, adding financial stress to many key income statement and balance sheet ratios at the higher rating level, including debt service coverage and liquidity. Additionally, Standard&Poor's assigned its 'A' rating to the authority's $395 million hospital revenue bonds, series 2006, issued for the system. The current debt issuance is part of a larger $1.14 billion capital plan over the next five years (2007-2011). While UMMS has benefited from several years of favorable financial
