Moody's Investors Services is reviewing Bank of America for a potential downgrade, and hospitals with bonds backed by the giant lender's letters of credit should have a contingency plan in place, according to an HFA Partners report.
Hospitals with BoA-backed bonds that do not take some kind of action may wind up paying a higher interest rate on an accelerated amortization schedule, according to the report. HFA Partners recommends hospitals evaluate three options if a downgrade does occur:
• Get a substitute letter of credit.
• Refinance with a bank direct placement.
• Refinance with a public offering.
To read the entire HFA Partners article, click here.
Hospitals with BoA-backed bonds that do not take some kind of action may wind up paying a higher interest rate on an accelerated amortization schedule, according to the report. HFA Partners recommends hospitals evaluate three options if a downgrade does occur:
• Get a substitute letter of credit.
• Refinance with a bank direct placement.
• Refinance with a public offering.
To read the entire HFA Partners article, click here.
More Articles on Hospital Bonds:
18 Hospitals With Tax-Exempt, Fixed-Rate Bond Issues in Past Month