Fitch Ratings has placed on Rating Watch Evolving the 'BB' rating on approximately $130.5 million New York State Dormitory Authority (NY) (Lenox Hill Hospital Obligated Group) revenue bonds series 2001.
The Evolving Watch reflects Lenox Hill's strategic options process that could lead to an affiliation or merger with another healthcare organization. Its board is expected to make a decision on a partner in the very near term. While the effect on Lenox Hill's long-term rating will depend on the affiliation or merger partner and the final arrangement between the two entities, Fitch believes that should Lenox Hill affiliate or merge it may result in an upgrade or affirmation of Lenox Hill's current rating. Given Lenox Hill's current credit profile, there may be negative pressure on the rating should an affiliation or merger not occur. Fitch will take further rating action when the affiliation or merger is announced and the 2009 audit is available.
For more detail on Lenox Hill see Fitch's press release, 'Fitch Affirms Lenox Hill Hospital's (NY) 2001 Revs at 'BB'; Outlook Negative', dated May 14, 2009, and available on Fitch's web site at 'www.fitchratings.com'.
Applicable criteria available on Fitch's website at www.fitchratings.com: 'Nonprofit Hospitals and Health Systems Rating Criteria', December 29, 2009. 'Revenue-Supported Rating Criteria', December 29, 2009.
Additional information is available at 'www.fitchratings.com'.
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Fitch Ratings, New York
Gary Sokolow, 212-908-9186
Jeff
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or
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212-908-0526
Email: cindy.stoller@fitchratings.com
