Feb. 12—Moody’s Investors Service downgraded a record $20 billion in U.S. not-for-profit healthcare debt in 2012, an increase of 213 percent from the $6.4 billion downgraded in 2011. It was the highest amount of downgraded debt in one year in the sector since the rating agency began tracking the metric in 1995, according to the report, U.S. Not-For-Profit Healthcare Rating Activity in 2012 Sets Record for Downgraded Debt.

The $20 billion in downgraded debt was more than double the year’s $9.7 billion of upgraded debt. In comparison, Moody’s reported $311 billion of public debt downgraded in 2012 across all of its public finance sectors compared to $24 billion of debt upgraded. 

The increase in downgraded debt reflects providers’ continued struggle to maintain margins as tepid economic growth contributes to slow revenue and lackluster volume growth, according to Moody’s.

Publication Date: Tuesday, February 12, 2013