The rating on Illinois Development Finance Authority and Sterling, Ill.'s bonds, issued for CGH Medical Center (CGH), reflects: Limited competition, with CGH capturing 70% of the primary service area's admissions; Historically sound financial performance, with fiscal 1999's operating and excess margins of 5.0% and 7.1%, respectively, generating good coverage of maximum annual debt service at 4.6 times; and A strong balance sheet, evidenced by a cash position of $23.3 million equal to 170 days' cash on hand and over 300% cash to total debt. Offsetting factors precluding a higher rating include: A limited local economic base, dominated by a few major employers; Unfavorable demographic trends, with an aging and declining population base; and A somewhat restrictive payor mix, with nearly
