The 'BBB+' rating and underlying rating (SPUR) on debt issued for Lake Regional Health System (LRHS, formerly known as Lake of the Ozarks General Hospital) reflects: A solid market position with little direct competition, Satisfactory profitability, Adequate liquidity, and A growing population. Offsetting credit factors include an above-average debt burden and nonobligated losses associated with employing physicians, along with a relatively limited, tourism-based economy. The bonds are secured by a gross revenue pledge of LRHS, which operates Lake Regional Hospital, a 140-bed licensed bed hospital in the Lake of the Ozarks resort area in central Missouri. The hospital is currently undergoing a sizable renovation and expansion project, including 40 private room, emergency department, and surgery expansions and additional parking. The
