FLORIDA
Moody's Investors Service last week lowered the rating on Cape Coral .Medical Center's $88.9 million of uninsured hospital revenue bonds to B1 from Ban, citing "significant" losses at the center.
As of March 31, the hospital's losses totaled $10.4 million and are expected to result in a violation of the bonds' required rate covenant, according to Moody's.
Much of the-losses, the rating agency said, were the result of a one-time expense of $6 million. The medical center, which is based in Lee County, also faces n rise in fixed costs following the opening of a new patient tower last December.
In addition-to noting the losses, Moody's cited the recent dismissal of senior management at the hospital by the center's board of trustees. The trustees' action "creates concerns of instability surrounding the current operations of the hospital," the rating agency said.
Cape Coral Medical Center has $42.9 million of Series 1987 bonds insured by AMBAC Indemnity Corp. The bonds, rated Aaa, were not affected by the downgrade.
-- Donald Yacoe, Atlanta
