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PARKVIEW COMMUNITY HOSPITAL (CALIF.) DOWNGRADED TO 'BBB+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Jan. 11 /PRNewswire/ -- Parkview Community Hospital's City of Riverside, 1985 series A bonds ($8.9 million currently outstanding) and City of Riverside, series 1988 bonds ($6.1 million currently outstanding) are lowered to "BBB+" from "A" by Fitch and removed from general review. The credit trend is stable.
 Parkview Community Hospital is an acute-care community hospital operating all of its 193 licensed beds on a 5.3-acre site in Riverside, Calif. Services of note include an extensive outpatient surgery program and a large obstetrics unit averaging more than 400 newborns a month, the most of any facility in Riverside County.
 Parkview possesses strong utilization trends as admissions totaled more than 12,000 in 1993, a nearly 20% increase from the prior year. The increase stems in large part from management's ability to enter into profitable full risk capitated contracts, which now account for nearly 25% of hospital revenues. Total excess margins are in the 7% range and debt service coverage is a solid 4.0x. The debt load is light as evidenced by maximum annual debt service as a percentage of revenues at 3.8% and debt-to-capitalization at 35%. Days cash on hand, at 58 days, is adequate.
 Credit concerns center around the competitive health-care environment within Riverside County and the weak geographic indicators of the service area.
 The hospital is contemplating an issuance of approximately $30 million in new debt during 1994 or 1995 for the construction of a replacement hospital tower to be built on its campus. At issuance, Fitch will re-evaluate Parkview's financial and operational performance and prospects to determine if any rating adjustment is necessary.
 -0- 1/11/94
 /CONTACT: Jerry Solomon of Fitch, 212-908-0557/


CO: Parkview Community Hospital ST: California IN: HEA SU: RTG

TW -- NY072 -- 1089 01/11/94 15:25 EST
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Publication:PR Newswire
Date:Jan 11, 1994
Words:300
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