NEW YORK (Standard&Poor's CreditWire) Feb. 26, 1999--Standard&Poor's today lowered its rating on New Jersey Health Care Facilities Finance Authority's $56.28 million revenue bonds series 1997, issued for Capital Health System, to triple-'B'-minus from single-'A'-minus. The outlook has been revised to negative from stable. The downgrade reflects significant operating losses in fiscal 1997 and through November 1998 (unaudited 11-month interims) and the failure of Capital Health System to achieve cost savings and other efficiencies as projected. Capital Health represents the 1997 merger of Helene Fuld and Mercer Hospitals in New Jersey. At the time of the merger, there were planned clinical and ancillary service consolidations slated for the two Trenton-based hospitals. To date, few of these efficiencies
