NEW YORK (Standard&Poor's) Aug. 23, 2001--Standard&Poor's today assigned its triple-'B'-minus rating to Northern Hospital District of Surry County, N.C.'s $12.56 million health-care facilities revenue refunding bonds, series 2001. The rating is based on: -- A stable balance sheet, combined with profitable operations over the past two fiscal years; -- Improved debt-service coverage on a pro forma basis after this refinancing; and -- A good business position in Surry County as the leading acute- and secondary-care provider. The weaker aspects of the district include: -- Declines in inpatient volumes; -- Continued vulnerability regarding physician departure; and -- Competition from large tertiary providers about 40 miles away, in Winston-Salem. The proceeds will refund the district's series 1991 revenue
