Credit downgrades declined among not-for-profit hospitals and health systems rated by Moody's Investors Service for the months of July through September compared with each of the prior two quarters.
Not-for-profits see fewer downgrades: Moody's
Analysts dropped nine healthcare borrower credit ratings and raised six, a more balanced ratio than the prior “three consecutive quarters of unprecedented heavy” downgrade activity, according to a newly released Moody's report. The sector's outlook remains negative as Congress debates healthcare reform, according to the report.
Downgrades rapidly accelerated in the final three months of 2008 as the credit crisis and economic downturn strained hospital and health system balance sheets. Twenty-seven not-for-profit healthcare borrowers saw their credit ratings drop between October and December 2008 compared with four upgrades. Between January and March, analysts 19 healthcare ratings fell and five improved. The following three months, downgrades outnumbered upgrades 17 to four.
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