Moody’s Investors Service reports that, based on audited financial results for 211 rated organizations, preliminary FY 2008 medians are showing a widespread weakening of credit measures across all rating categories.
Data from the preliminary medians are suggesting several significant developments. First, all major ratios are showing decline, including operating margin and days cash on hand. Second, every rating category shows signs of weakening. Third, most organizations are experiencing a decline in liquidity, the combined effect of weakening investment income and weakening operating cash flow. And finally, the median rate of expense growth continues to outpace the median rate of revenue growth for the third consecutive year.
Moody’s expects to publish full year FY 2008 medians in summer 2009, and predicts that these medians will show further weakening.
The special comment, Not-for-Profit Healthcare Preliminary Medians Show Weakening Across All Major Ratios and All Rating Categories, is available at www.moodys.com.
