The downgrade on New Jersey Health Care Facilities Finance Authority's bonds, issued for Trinitas Hospital, reflects: A nearly one-year delay in implementing the merger plan, during which the merger partners' financial condition deteriorated measurably; The projected increase in cost to accomplish the plan, including higher capital costs and a modest amount of additional debt; and Reduced projected savings from the merger, resulting in weaker projected profitability and liquidity. The rating remains investment grade since the reasons for the merger are still compelling and the combined business position of the merger partners is fundamentally sound. The delay in implementing the merger was not due to management or governance issues; rather it related to governmental review and appeal processes, which have been
