Moody's Investors Service said it expects more hospitals to issue senior-subordinated debt following the success of Ascension Health's groundbreaking, $650 million senior-subordinated debt offering earlier this year. Moody's explained in a new report how it rates such deals, given that not-for-profit healthcare offerings typically have involved only one tier of debt. Many issuers have contacted Moody's since the offering, and the report is designed to address their questions, said Lisa Martin, senior vice president at Moody's and author of the report. Martin said she doesn't know of similar deals in the works but that she expects other health systems to adopt the innovation. -- by Paul Barr
More hospitals likely to offer new type of debt: Moody's
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