To hold BBB rated 10-year hospital bonds over top-rated general-obligation debt, hospitals had to generate extra yield of 2.74 percentage points beginning May 13, compared to 1.93 percentage points beginning Jan. 17. This is the widest spread since Oct. 13, 2009, according to Bloomberg data. AA rated hospital debt above the 10-year top-rated bonds became 1.51 points May 16, the widest level since Aug. 2009.
Higher-rated hospitals are less likely to face spreads widening to this degree, according to the report.
Read the Bloomberg report on borrowing costs.
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