The rating affirmation on Ascension Health, Mo.'s bonds incorporates a review of Ascension Health's nine-month-interim results for the period ended March 31, 2001, and reflects: Considerable geographic and financial dispersion among system members, but also a growing reliance on the Central Indiana Health System's strong performance to support the overall system; A solid financial profile, highlighted by a strong balance sheet, positive operating income, abundant cash flow, and debt-service coverage; A conservative investment policy—with only 46% equities, versus 54% fixed-income securities (or cash), 35% of which are U.S.-government securities—which has allowed Ascension Health to dodge current market declines with a real, though modest, decline in overall liquidity and related ratios, compared to last fiscal-year end; Improved operating performance and business
