S&P downgrades bond rating for Cedars issue. (Standard and Poor's Corp.; Cedars Medical Center)

MIAMI -- Citing a $6.7 million operating loss, sharply decreased cash on hand and high expenses, Standard & Poor's has downgraded Cedars Medical Center's $55.5 million bond issue from single A- to double B.

Cedars' management said that S&P concerns are valid but place too much emphasis on a decrease in commercially insured patients.

"I think the important thing is that there were largely nonrecurring problems," said Fred Fetters, Cedars' chief financial officer. "Our budget for this year will put it back in the black. We're not looking at ongoing losses."

Fetters said that 1991 was a uniquely difficult year. The hospital has had multiple setbacks, including …