The speculative-grade rating on Franklin, Tenn.-based Community Health Systems Inc. reflects its significant debt leverage as a result of its July 2007 debt-financed acquisition of Triad Hospitals Inc., and industry challenges that the company faces, such as uncertain third-party reimbursement, significant bad debt expense, and relatively weak patient volume trends. The company also faces the risk of integrating a large number of hospitals into its existing operations. These factors are somewhat mitigated by Community's diversified hospital portfolio and management's experience operating a large number of hospitals. Community's hospital portfolio stands at 126 hospitals as of early December 2007, after expanding to a peak of 131 hospitals from 78 hospitals with the Triad acquisition. Pending asset transactions (both acquisitions and divestitures)
