The 'AA-' rating on Salem Hospital Facility Authority, Oregon revenue bonds, issued for Salem Hospital, reflects: Dominant business position with a market share of 59% based on discharges, Solid balance sheet with low leverage and ample cash reserves, and Strong recent and historical financial performance. Offsetting factors include decreased liquidity, with unrestricted cash falling in four of the past five years due to aggressive capital spending, flat utilization, and an older main facility that will most likely be replaced within the next five to seven years. Salem Hospital operates two campuses and three outpatient clinics approximately 45 miles south of Portland in Salem. One campus provides rehabilitation and outpatient therapy services while the main campus contains the 330-staffed bed acute
