The Standard & Poor's underlying rating (SPUR) on Montgomery County Higher Education and Health Authority, Pa.'s bonds, issued for Holy Redeemer Health System (HRHS), reflects: Operating losses in 1998 and 1999, A competitive health care market, and Moderately high debt. Offsetting credit factors include: Increasing outpatient volume and stable inpatient admissions, A well-developed continuum of care, and Adequate coverage and liquidity. The bonds are secured by a gross revenue pledge of the obligated group. The obligated group makes up 95% of the system's revenues and 85% of the system's bottom-line profits. From 1993-1997, operating and excess margins averaged 0.43% and 2.5%, respectively. However, in 1998 and 1999 the obligated group had operating losses. In 1998, operating and excess margins were
