The healthcare industry's strongest unenhanced credits-institutions rated AA-remained stalwart despite financial pressures that are straining the industry as a whole, according to Standard & Poor's Corp.
The New York-based rating agency's latest analysis of AA healthcare credits appeared in the Nov. 20 issue of CreditWeek Municipal. Standard and Poor's rates 67 AA healthcare credits, the same as last year. Within the category, two credits were downgraded, two new institutions were added, and one credit was raised to AA from AA-.
AA-rated healthcare providers account for more than $11 billion in debt, or 10% of not-for-profit healthcare debt in 1995. Last year, AA-rated providers represented 8.65% of not-for-profit healthcare debt (Oct. 3, 1994, p. 94). These AA-rated institutions, "generally renowned for their research, teaching and patient care," are likely to benefit from easier access to capital and lowest capital costs as healthcare reform becomes a reality, Standard & Poor's said.