The rating on Connecticut Health and Educational Facilities Authority's bonds, issued for Windham Community Memorial Hospital Inc. and The Hatch Hospital Corp. (WMH), reflects: Slender operating and excess margins, High leverage, A concentrated payor mix, and A small active medical staff. Offsetting credit factors include: A strong market position, Stable admissions and improving outpatient visits, and Improved liquidity position. The bonds are secured by a mortgage and revenues of WMH. Since 1993, WMH's operating and excess margins have been low, but satisfactory, and have averaged 1.8% and 3.2%, respectively. Operating and excess margins for 1998 were l.6% and 3.9%, respectively, and for 1997 were 1.9% and 3.1%, respectively. WMH has a high long-term debt-to-capital ratio of 56% and debt service
