Rating volatility in the healthcare sector has reached its lowest point in more than 10 years, according to a report from Moody's Investors Service.
During the first quarter of 2011, only 11 hospitals were downgraded or upgraded — the lowest quarterly total in many years. Downgrades continued to outpace upgrades, but the pace of downgrade activity in the first quarter of 2011 slowed to a level not seen since 2002. There were only six downgrades that quarter, following 15 in the first quarter of 2010.
"We expect the trend of downgrades to continue to outpace upgrades in the remaining quarters of 2011 even if rating volatility remains below average," said Moody's Associate Analyst Nyisha Hohn-Cox. "The lower total level of upgrades and downgrades largely reflects the continued benefits of expense reductions mitigating revenue challenges."
Read the Moody's report on hospital upgrades and downgrades.
Read more Moody's coverage on the healthcare industry:
- Moody's Requiring More Data on Liquidity of Not-For-Profit Hospitals, Systems
- Moody's Says Health Reform Will Stretch State Budgets
- Moody's Says Healthcare Reform May Harm Hospital Credit
During the first quarter of 2011, only 11 hospitals were downgraded or upgraded — the lowest quarterly total in many years. Downgrades continued to outpace upgrades, but the pace of downgrade activity in the first quarter of 2011 slowed to a level not seen since 2002. There were only six downgrades that quarter, following 15 in the first quarter of 2010.
"We expect the trend of downgrades to continue to outpace upgrades in the remaining quarters of 2011 even if rating volatility remains below average," said Moody's Associate Analyst Nyisha Hohn-Cox. "The lower total level of upgrades and downgrades largely reflects the continued benefits of expense reductions mitigating revenue challenges."
Read the Moody's report on hospital upgrades and downgrades.
Read more Moody's coverage on the healthcare industry:
- Moody's Requiring More Data on Liquidity of Not-For-Profit Hospitals, Systems
- Moody's Says Health Reform Will Stretch State Budgets
- Moody's Says Healthcare Reform May Harm Hospital Credit