DALLAS (Standard&Poor's) Dec. 4, 2007--Standard&Poor's Ratings Services lowered to 'B-' from 'BBB-' its ratings on St. Charles Parish Hospital Services District No. 1, La.'s GO bonds. The outlook was also revised to negative. The downgrade reflects a criteria change in Standard&Poor's approach to tax-secured hospital districts. In cases where the underlying strength of the hospital district is considered deeply speculative, the rating will be increasingly driven by the hospital's financial and operating profile. Operational risk is a credit concern to the extent that pledged revenues may be interrupted due to bankruptcy protection or diversion to operations. This includes GO bonds with an unlimited ad valorem tax pledge approved by voters to pay debt service.
