Moody's: Small hospitals dominate credit downgrades in first quarter
AHA News Now
Apr 25, 2013
Moody’s Investors Service downgraded six credit ratings in the not-for-profit health care sector during the first quarter of 2013, five on smaller hospitals with less than $500 million in revenues, according to a report released today by the credit rating agency. “Small hospitals are unable to absorb the reimbursement pressures facing the industry,” said Moody’s Associate Managing Director Lisa Goldstein. The ratio of downgraded issuers versus upgraded during the quarter was 2 to 1– the same ratio as in the fourth quarter of 2012. Looking ahead, Moody’s said it expects more downgrades than upgrades in the second quarter, given that there are already three hospitals currently under review for downgrade.