Large debts caused Lancashire Teaching Hospitals NHS Foundation Trust to fall short in new performance ratings released yesterday (Wednesday).

The trust which runs Chorley and South Ribble Hospital and the Royal Preston Hospital, lost its three-star status in the assessments, published by the Healthcare Commission, because of a £3million budget deficit for 2004/5, meaning it failed its financial target for the year. Trust chairman, Dennis Benson, said: "We are disappointed to lose a star but our new rating has nothing to do with the quality of services we provide.

"It is because we didn't balance the books at the end of the last financial year."

Of the eight targets set by the commission the trust was successful in seven other areas including making sure 98 per cent or more of accident and emergency (A&E) patients are seen within four hours or less, having no 12-hour waits for admission via the A&E department and a maximum two-week wait for all cancer patients.

They also fared well in financial management, hospital cleanliness, appointment bookings and meeting standard admission waits.

Tony Curtis, chief executive of the trust, said: "Staff should feel proud the services they work tirelessly to provide for patients have received the highest marks in the country.

"I would like to congratulate staff for their continued commitment."