Summary: Philadelphia Industrial Development Authority, Pennsylvania

Primary Credit Analysts: Jennifer J Neel, New York, (1) 212-438-2069; jennifer.neel@spglobal.com Elissa S Granick, (1) 212-208-1739 The downgrade Philadelphia Industrial Development Authority, Pa.'s bonds, issued for Fox Chase Cancer Center Institute for Cancer Research reflects the negative impact that a $28 million 1997 debt issue has on Fox Chase Cancer Center's debt. It also reflects Fox Chase's thin recurring operating returns, Philadelphia's competitive health care market, and managed-care payment pressures. While the issuance expands research space, it effectively doubles outstanding debt without providing immediate revenue and earnings benefits. The project, however, differentiates Fox Chase in preventative cancer care and broadens its service continuum. Notwithstanding added risks, Fox Chase's credit quality remains strong at 'A+', indicative of its business niche and

... Authority, Pa.'s bonds, issued for Fox Chase Cancer Center Institute for Cancer Research reflects the negative impact that a $28 million 1997 debt issue has on Fox Chase Cancer Center's debt. It also reflects Fox Chase's thin recurring operating returns, Philadelphia's competitive health care market, and managed-care payment pressures. While the issuance expands research space, it effectively doubles outstanding debt without providing immediate revenue and earnings benefits. The project, however, differentiates Fox Chase in preventative cancer care and broadens its service continuum. Notwithstanding added risks, Fox Chase's credit quality remains strong at 'A+', indicative of its business niche and reputation as one of only 26 comprehensive cancer centers in the U.S. Additional strengths include management's prudence in growing business, cushioning the balance sheet, and controlling costs. The center also demonstrates a strong track record...

Summary