S&P expects new rating criteria to be unfavorable for hospital districts

S&P Global Ratings expects its revised rating criteria for nonprofit hospitals and health systems in the U.S. and Canada, which was published March 19, to have a negative impact on nonprofit hospital districts.

While the "vast majority" of standalone providers and health systems will not see a negative rating action, S&P expects 60 percent of hospital districts to be downgraded up to three notches, 10 percent of districts to see an upgrade and 30 percent of hospital districts to remain unchanged.

In comparison, out of the 150 health systems and 350 standalone hospitals rated by S&P, the credit rating agency expects 70 percent of health systems and standalone hospitals to maintain their current rating, 10 percent to be downgraded and 20 percent to be upgraded.  

S&P expects the majority of health systems and standalone hospitals to remain the same because the revised criteria are very similar to the criteria published in December 2014.

Read the full update on nonprofit rating criteria here.

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