The third quarter result was only the second time in two years that upgrades exceeded downgrades, and the decline in downgrades was larger than any quarter over the past 10 years, according to the release. Additionally, the $2.1 billion in upgraded debt outweighed the $4.6 million in downgraded debt.
Jennifer Ewing, an associate analyst for Moody’s, said the causes for the third quarter results were “idiosyncratic” and do not reflect the negative credit trends, such as payor pressures and slowed volumes, that most hospitals are facing.
By the year’s end, they expect the total downgrades will still outpace upgrades, according to the release. Through the first three quarters of 2011, there have been 23 downgrades and 18 upgrades.
Related Articles on Hospital Ratings:
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From Stable to Negative: 6 Reasons Behind Gloomy Non-Profit Hospital Outlooks
Moody’s Raises Outlook for LifePoint Hospitals
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