Moody's Investors Service, New York, said investor-owned healthcare services companies face $42.2 billion in bank credit facilities and bonds that come due by the end of 2014. Moody's believes that they will be able to refinance thanks to their modest company-specific risk and the return of investor appetite for high-yield corporate bonds. All but $200 million of the debt coming due is rated as speculative grade, or below investment grade.
Moody's sees potential for debt refinancing
Moody's also noted that healthcare speculative grade issuers as a whole paid down $5.6 billion of their 2010-14 maturities with new debt within the past six months. Facilities-based services account for two-thirds of the amount owed by these issuers. Hospital companies make up three of the top five for the amount of speculative-grade debt due by the end of 2014. Nashville-based HCA is tops with $13.8 billion. Community Health Systems, Franklin, Tenn., is second with $6.8 billion. Health Management Associates, Naples, Fla., is fifth with $3 billion.
Overall healthcare debt maturities in this period total $106 billion, with $63 billion in speculative-grade debt and $43 billion in investment-grade debt. Among all nonfinancial issuers, $800 billion in speculative-grade debt and $550 billion in investment-grade debt comes due by the end of 2014.
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.