Standard&Poor's Ratings Services affirmed its 'BBB-' long-term rating on $244.5 million series 2008 bonds issued by New Jersey Health Care Facilities Financing Authority for St. Joseph'?s Healthcare System (SJHS). The outlook is stable. The 'BBB-' rating reflects our assessment of the system's: Likely issuance of approximately $32 million of garage revenue bonds by SJHS's subsidiary corporation; Adequate operating performance with an operating margin of 2.0% but slim debt service coverage of 1.9x in fiscal 2009; Limited balance sheet flexibility due to significant leverage and thin liquidity; Essentiality of services as St. Joseph's Regional Medical Center (SJRMC) is a leading provider of charity care in New Jersey, although there is heavy reliance on special federal and state subsidy funds
