Relatively diversified hospital portfolio. Good position in its relatively small markets. Subject to potential reduction in government reimbursement. High debt burden. Sufficient cash generation to fund all capital expenses and most acquisition activity. Adequate liquidity with a covenant cushion in the 15%-20% range. Our stable rating outlook on Community Health Systems reflects expectations that it will maintain a "highly leveraged" financial risk profile while it continues to pursue its modest acquisition strategy and manages through a difficult reimbursement environment. Given the company's upside potential on more recent acquisitions to help counterbalance margin pressure and its ability to generate good free cash flow, we do not expect a downgrade. Nonetheless, if Community cannot continue overcoming industry pressure on earnings and cash
