Moody’s Downgrades Ratings of 5 Small Not-for-Profit Hospitals
April 25—Smaller hospitals with less than $500 million in revenues accounted for five of the six downgrades in Moody’s Investors Service’s first-quarter ratings revisions for the not-for-profit healthcare sector for 2013.
Moody’s attributes the downgrades to a continuing trend of small hospitals being unable to absorb the persistent reimbursement pressures facing the industry, which it expects to continue throughout the year. The agency expects more downgrades than upgrades in the second quarter, given that three hospitals are already currently under review for downgrade.
Moody’s downgraded $988 million of debt and upgraded $658 million. The three providers receiving upgrades all demonstrated multiple years of improved financial performance reflecting growing volume trends and dominant local market positions, the agency stated in a release.
Publication Date: Thursday, April 25, 2013