Fitch Affirms & Removes Mt. Clemens General Hospital, Michigan, from Watch Negative.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. affirms and removes from Rating Watch Negative the 'BB' rating on the approximately $82.8 million outstanding County of Macomb Hospital Finance Authority hospital revenue bonds Hospital revenue bond A bond issued to finance construction of a hospital by a municipal or state agency. hospital revenue bond Tax-exempt debt issued by a city, county, state, or hospital authority with debt service guaranteed by hospital , series 2003B (Mount Clemens General Hospital). The Rating Outlook is Negative. Fitch placed the bonds on Rating Watch Negative on Nov. 11 due to the potential of a qualified audit opinion, which had postponed the release of the audit. In order for the audit to be released without a qualified opinion, Mount Clemens General Hospital (MCGH MCGH Mount Clemens General Hospital (MIchigan) MCGH McGraw-Hill Book Co. ) needed a waiver from all bondholders, which has been received. Management anticipates the release of the audit this week. The Negative Rating Outlook reflects MCGH's continued operating losses, which were exacerbated by a 35-day nurses' strike that ended Sept. 11, 2004, and low debt service coverage. Fitch expects that MCGH's profitability, as supported by operating initiatives, will improve over the medium term. However, any deterioration in balance sheet or operating ratios could lead to additional downward movement in the rating. MCGH's main operating component is a 288-bed acute care osteopathic os·te·op·a·thy n. A system of medicine based on the theory that disturbances in the musculoskeletal system affect other bodily parts, causing many disorders that can be corrected by various manipulative techniques in conjunction with conventional teaching hospital in Mount Clemens, Michigan Mount Clemens is a city in the U.S. state of Michigan. As of the 2000 census, the city population was 17,312. It is the county seat of Macomb County6. Early History , approximately 25 miles northeast of downtown Detroit. Total consolidated revenue including affiliates equaled $220 million in fiscal 2003 (unaudited). MCGH covenants to provide annual and quarterly disclosure to bondholders. Recent disclosure to Fitch has been timely and thorough, including a balance sheet, income statement, statement of cash flows, utilization statistics and management and discussion and analysis. |
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