The rating on Illinois Development Finance Authority, Ill.'s bonds, issued for Adventist Health System Sunbelt reflects solid credit characteristics including good financial and geographic dispersion and implementation of forward thinking strategies, although some of these strategies have temporarily weakened financial performance. The rating is also tempered by Sunbelt's aggressive use of debt. The negative outlook reflects poor operating results in fiscal 1997 continuing through 1998 and Sunbelt's acquisition of Columbia/HCA Healthcare Corp.'s LaGrange Hospital, which adds substantial debt but no liquidity. The par amount on the series 1999 bonds increased from $96 million after the system decided it was not cost effective to sell its $75 million tax-exempt subordinate capital securities and instead will issue the debt as long-term bonds.
