The rating on Rhode Island Health and Education Facilities Building Corp.'s bonds, issued for Newport Hospital, reflects: * Its dominant market position, * A solid balance sheet and overwhelming liquidity after incorporating the guarantee of this issue by the Newport Hospital Foundation, and * A recent affiliation with Lifespan Corp., which is expected to help Newport become more profitable in the future. A higher rating is precluded by Newport's declining operating profitability, strong managed care presence, and significant losses at non-obligated Lifespan Corp. The bonds are secured by a revenue pledge from Newport Hospital with a guarantee from the foundation. Newport Hospital (NH) is a 105-staffed bed provider located in Newport about 35 miles south of Providence, R.I. NH captures
