The ratings agency said in a March 18 report that it predicts any credit implications from the attack are likely to be limited to smaller companies due to their “limited financial flexibility to withstand even temporary cash flow disruptions.” These companies tend to be rated in the “CCC” to low-to-mid “B” categories, which indicates low margins of safety.
Fitch said it assumes higher-rated companies, which typically are publicly traded, have the flexibility to withstand the disruptions.
“This is supported by most publicly traded issuers not viewing the event as material enough to warrant filing 8-Ks,” Fitch said in the report, adding that more will be known about the attack’s financial implications after first-quarter 2024 earnings results are reported.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.