The ratings on Holy Cross Health System Corp., Ind.'s bonds, issued by various issuers, reflect the health system's very strong management, geographic and financial risk dispersion, utilization, and financial performance with ample liquidity. The senior management team is experienced and has implemented strong systemwide financial performance, cash management, and capital budgeting processes. As a result, excess margins exceed 7% in each of the past two years ending May 31 on a $1.3 billion revenue base. In addition, unrestricted cash and investments total $890 million at Feb. 28 exceeding total debt outstanding of approximately $735 million. Pro forma debt to capital remains moderate at 38% with no additional debt anticipated in the near term. Despite these strengths, concerns precluding a higher
