The rating on Hamilton County, Ohio's bonds, issued on behalf of Deaconess Hospital of Cincinnati, reflects the Deaconess Associations Inc.'s (the hospital's parent corporation): Niche as a senior care provider in several states, Continued expansion and business acquisitions, and An extremely strong cash position and financial cushion. These rating factors are offset by the hospital's: Weak acute-care market position (4%) as an independent provider in the competitive Cincinnati area, High dependence on Medicare (70% of net revenues), Reduced operating margins, and High debt burden. The bonds are secured by an interest in the Deaconess Hospital's gross receipts and are guaranteed by the hospital's parent corporation, the Deaconess Associations Inc. In addition to the hospital (the obligated group), the corporation also
