The rating on New Jersey Health Care Facilities Financing Authority's bonds, issued for the Medical Center at Princeton, reflects the hospital's strong finances, additional resources outside the obligated group, and Princeton's favorable competitive position in a strong economy. Leverage remains high compared to other similarly rated medical centers. Bond proceeds from the new issue will be used to refund the outstanding revenue bonds and to finance $20 million in capital projects. The medical center recently posted its third consecutive year of improved profits and ended 1997 with a 3.5% excess margin, or $4.3 million profit, on $123 million of revenues. Pro forma coverage was strong at 3.4 times (x) in 1997. The medical center's debt is moderate at 4%. Princeton
