Standard&Poor's Ratings Services revised its outlook to stable from negative on the series 2008 bonds issued by the New Jersey Health Care Facilities Financing Authority for St. Joseph's Healthcare System (SJHS). We also affirmed our 'BBB-' rating on the bonds. The outlook revision reflects improved operating performance and balance sheet, with margins, coverage and days' cash more in line with the rating. In addition, we feel that management's efforts to reduce costs and strategies to boost volumes will position the organization to generate results in line with the rating in the future. More specifically, the 'BBB-' rating reflects our assessment of SJHS': Limited balance-sheet flexibility with high debt and low unrestricted reserves relative to median ratios, though there
