FAHC bond placed under credit watch

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(Host) Standard & Poors has warned investors that a controversy involving the state’s largest hospital could affect its credit rating. Standard & Poor’s rates bonds and other investments according to their safety and creditworthiness. On Wednesday, Standard & Poor’s placed Fletcher Allen’s $100 million bond issue under a credit watch.

The rating agency cited the recent allegations that the hospital tried to avoid state oversight in building a new $55 million parking garage. Brian Williamson of Standard & Poors was part of the team that looked at Fletcher Allen.

(Williamson) “What the credit watch does is, it informs investors that we are aware of an issue that is out there. And the credit watch that we have is a negative watch so basically if something comes to fruition from this issue, it could impact the rating in a negative sense. But at this point in time, we’re not doing a downgrade we’re just informing investors that we’re aware of the issue.”

(Host) Standard & Poors notes that the $100 million in bonds are insured and that Fletcher Allen’s financial performance remains strong.

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