So far, 2013 has been a slow year for hospitals and credit ratings, as only three hospitals and health systems received an upgrade or downgrade between Jan. 16 and Feb. 15, according to a report by HFA Partners.
The health systems receiving credit downgrades included:
• Elmhurst (Ill.) Memorial Healthcare — from BBB+ to BBB (Fitch)
• University of Maryland Medical System (Baltimore) — from A to A- (S&P)
Only one hospital garnered a credit upgrade in the past month:
• Redlands (Calif.) Community Hospital — from BBB to BBB+ (S&P)
Eight hospitals and health systems also had positive rating affirmation changes, while five hospitals and health systems had negative rating affirmation changes.
Most notable among hospitals receiving credit rating affirmations was West Penn Allegheny Health System, which received a positive affirmation from Moody's. Moody's upgraded the Pittsburgh-based health system's credit outlook from negative to developing after health insurer Highmark agreed to buy West Penn's debt for 87.5 cents on the dollar.
The health systems receiving credit downgrades included:
• Elmhurst (Ill.) Memorial Healthcare — from BBB+ to BBB (Fitch)
• University of Maryland Medical System (Baltimore) — from A to A- (S&P)
Only one hospital garnered a credit upgrade in the past month:
• Redlands (Calif.) Community Hospital — from BBB to BBB+ (S&P)
Eight hospitals and health systems also had positive rating affirmation changes, while five hospitals and health systems had negative rating affirmation changes.
Most notable among hospitals receiving credit rating affirmations was West Penn Allegheny Health System, which received a positive affirmation from Moody's. Moody's upgraded the Pittsburgh-based health system's credit outlook from negative to developing after health insurer Highmark agreed to buy West Penn's debt for 87.5 cents on the dollar.
Related Articles on Hospital Credit Ratings:
13 Statistics on the Non-Profit Hospital Credit Rating Market in 2012
Moody's: Record $20B of Non-Profit Healthcare Debt Downgraded in 2012
Scottsdale Healthcare CFO Todd LaPorte: 5 Ways to Approach Your Credit Rating Meetings