The rating on the Richmond Hospital Authority, Ind.'s bonds, issued for Reid Hospital, reflects: An impressive balance sheet, Ample debt-service coverage, Steady growth in revenues, and Strong patient activity and a solid market position. Reid is located in Richmond, Ind., a small, rural, agriculturally based community. The hospital's liquidity is substantial, with almost $206 million in cash and board-designated funds (unaudited), as of Dec. 31, 2000, amounting to 645 days' cash and 605% of debt. Though margins declined from 1999's levels of 11.0% and 21.1% on operating and excess bases, performance was still strong in fiscal 2000, with a 5.9% operating margin and a 17.6% excess margin. Strong cash flow, coupled with a low debt burden, drove excellent debt-service coverage
