The second quarter saw more credit downgrades than upgrades at a four to one ratio. Moody’s Associate Analyst Jennifer Ewing said contributing factors include federal and state budget deficits, cuts to Medicaid and Medicare funding, flat patient volumes, poor payor mix and more uncompensated care, according to the report.
She also said Moody’s predicts credit downgrades will continue to overwhelm credit upgrades in the latter half of 2011, especially for small, independent hospitals.
Read the AHA News Now report on credit downgrades.
Related Articles on Credit Ratings:
8 Recent Hospital & Health System Credit Downgrades
Low Investment-Grade Hospitals Face Highest Borrowing Costs Since 2009
Moody’s: Rating Volatility in Healthcare At Lowest in 10 Years
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