Standard&Poor's Ratings Services affirmed its 'BBB-' on $238 million series 2008 bonds issued by the New Jersey Health Care Facilities Financing Authority for St. Joseph's Healthcare System (SJHS). The outlook remains negative. The negative outlook reflects our opinion that the significant challenges faced by SJHS may preclude sufficient improvement in finances necessary to affirm the 'BBB-' rating next year. However, we affirmed the rating this year based on SJHS' increased unrestricted cash and investment balances, rising volumes, and expected surplus this year -- although much of the improvement is due to one-time revenue -- coupled with management's ongoing efforts to reduce costs and implement additional strategies to increase volumes. The 'BBB-' rating reflects our assessment of SJHS': Improved
