Standard&Poor's Ratings Services affirmed its 'BBB' underlying rating (SPUR) on Northern Hospital District of Surry County, N.C.'s bonds. The outlook is stable. The rating reflects liquidity that is strong for the rating category despite the substantial investment in plant, with more capital investment planned for the next several years. Higher-than-average liquidity is necessary to offset issues often associated with small rural providers, such as a limited medical staff, economically weaker service areas, and out-migration to larger facilities. Increased volumes in 2004 as well as concerted management attention paid to operations following a substantial renovation of the hospital have led to recently improved profitability. Northern Hospital District of Surry County's profitability has generally been stable and in fact improved
