The rating on Colorado Springs, Colo.'s bonds, issued for Memorial Hospital of Colorado Springs, reflects the hospital's ownership by the city of Colorado Springs, a stable and well-tenured management team with a new CEO search underway, growing patient utilization corresponding with favorable local demographic and economic trends, and sound financial performance. The preceding strengths are tempered by moderate competition with increasing managed care pressure and increased pro forma debt. In addition, there is uncertainty about the city's future ownership of the hospital and potential transfers of assets to the city from the hospital. The rating is premised on the assumption that the hospital will continue to be owned by the city with minimal oversight by it, and any payment-in-lieu-of-taxes and/or
