NY -- Standard&Poor's CreditWire 10/22/97 -- Standard&Poor's today lowered its rating to single-'B'-minus from triple-'B'-plus on New Jersey Health Care Facility Financial Authority's revenue health care bonds issued for Newcomb Medical Center. The outlook has been revised to developing from negative. The rating reflects Newcomb's unexpected $14 million loss in 1996, which eliminates all financial flexibility. The hospital violated its rate covenant and auditors expressed doubt that Newcomb could continue as a going concern. Half of 1996's loss was due to booking reserves for a potential liability associated with three drug and alcohol clinics (now closed) operated by Newcomb through a third party contractor. An ongoing Medicaid investigation may ultimately prove that all or part of
