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THE MEDICAL CENTER OF CENTRAL MASSACHUSETTS BONDS RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

THE MEDICAL CENTER OF CENTRAL MASSACHUSETTS BONDS RATED 'A+' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Dec. 2 /PRNewswire/ -- The Massachusetts Health and Educational Facilities Authority's $25 million revenue bonds, Series A, issued for the Medical Center of Central Massachusetts, are rated 'A+' by Fitch. The credit trend is stable.
 The rating reflects the Medical Center of Central Massachusetts, Inc.'s recent strong financial results, dominant market share position, strong historical pro forma debt service coverage, and solid cash position bolstered by an unsecured guaranty of the bonds by the Med Center's cash-rich parent.
 The Med Center is the dominant provider of acute care services in its primary service area with about 37 percent of 1990 discharges. Three years of historic pro forma annual debt service coverage exists, with the most recent year being a strong 3.28 times. As of September 1991, the unrestricted cash on hand is good, totaling $19.3 million. The parent's unrestricted cash position totaled $41.7 million.
 Offsetting these strengths is a falling inpatient admission trend despite the closure of several nearby acute care facilities. There is no debt service reserve fund. Concerns also exist about stiffening competition, especially for managed care contracts. Lastly, a contemplated major near-term construction project could, under a worst case scenario, cost as much as $82 million. About 80 percent of the cost of this new project is expected to be debt financed.
 -0- 12/2/91
 /CONTACT: Edward C. Merrigan of Fitch, 212-908-0513/ CO: Massachusetts Health and Educational Facilities Authority ST: Massachusetts IN: HEA SU: RTG


JT -- NY060 -- 8428 12/02/91 14:36 EST
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Publication:PR Newswire
Date:Dec 2, 1991
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