NEW YORK (Standard&Poor's) July 30, 2004--Standard&Poor's Ratings Services said it raised its underlying rating (SPUR) to 'BBB' from 'BBB-' on Northern Hospital District of Surry County, N.C.'s outstanding bonds. The outlook is stable. The higher rating reflects a balance sheet that is characterized by good liquidity despite ample capital spending and moderate debt levels; respectable debt service coverage driven by profitability, which has been largely stable since the last bond issue, except in 2002; and a solidified business position in Surry County, its local primary service area. Limiting factors include general concerns associated with this smaller hospital, such as a limited medical staff, service area out-migration, and competition from tertiary providers. "The stable outlook reflects the
