Standard&Poor's Ratings Services affirmed the 'A' long-term rating on the Washington Health Care Facilities Authority's series 2009A and 2011A bonds, issued on behalf of the Fred Hutchinson Cancer Research Center (Fred Hutch). At the same time, Standard&Poor's affirmed its 'A' issuer credit rating on the center. The outlook is negative. The negative outlook reflects the center's heavy reliance on federal grants and contracts (nearly 65% of fiscal 2014 revenues), which we expect will face continued pressures considering the federal funding environment and will likely result in lower margins for Fred Hutch going forward. Additionally, we believe the center's high concentration in direct placement debt ($174.2 million) compared with the relative levels of available liquidity ($119.8 million)
