NY -- Standard&Poor's CreditWire 12/30/97 -- Standard&Poor's today lowered its rating to double-'B'-plus from triple-'B' on New Jersey Health Care Facility Finance Authority's revenue bonds series 1993A issued for Union Hospital&Mega Care. The downgrade reflects unmet expectations for income statement and balance sheet improvements; and less confidence in the parent corporation's (St. Barnabas Corp) ability to support this debt as the St. Barnabas system has expanded. Several new components have been added to the system since the rating was last reviewed, including some which are not financially strong, also requiring assistance. Financial performance remains weak with operating and excess margins for Union Hospital and Mega Care combined of 1.4% and 1.5% respectively in 1996.
