Bangkok--5 Oct--Standard & Poor's
Speculative-grade health care providers in the U.S. continue to face many challenges, while not-for-profit small hospitals have improved their operations in the past year, Standard & Poor's Ratings Services said today in two reports.
Lower-rated providers face such challenges as operating losses, weak demographics, limited business position, high debt, and low liquidity.
"As a consequence, there has been a disproportionately larger percentage of downward rating actions in the speculative-grade category and a greater number of providers joining the speculative-grade ranks," said Standard & Poor's credit analyst Kenneth Gacka. "We believe these rating trends will likely continue over the near to medium term," said Mr. Gacka in the report, "Volatile Times Continue For Speculative-Grade Health Care Providers".
Separately, operating and balance sheet metrics for small hospitals have improved, according to Standard & Poor's analysis of key median ratios for the sector.
"We believe that the sector's response to the recession, which focused on tightening expenses and strengthening service lines, have helped small hospitals improve operating margins," said Standard & Poor's credit analyst Avanti Paul in the report, "U.S. Not-For-Profit Small Hospitals Move Toward Stability".
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Kenneth T Gacka, San Francisco (1) 415-371-5036
Avanti Paul, Chicago (1) 312-233-7061