Standard&Poor's Ratings Services has revised its outlook to negative from stable and affirmed its 'BBB-' long-term rating on the $242 million series 2008 bonds issued by New Jersey Health Care Facilities Financing Authority for St. Joseph?s Healthcare System (SJHS). The outlook revision reflects our view of SJHS's 2010 financial performance, which did not meet projections and its large Medicaid-related liability that will preclude any cash accumulation this year. The 'BBB-' rating reflects our assessment of SJHS's; Thin, but positive, operating income; Essentiality of services as St. Joseph's Regional Medical Center (SJRMC) is a leading provider of charity care in New Jersey (AA); Adequate competitive position although area demographics are challenging; and Decreasing construction and project risk as SJHS
