Credit matters – Will revised credit rating criteria impact your nonprofit hospital?

Description

Abstract: With credit ratings playing so vital a role in hospitals’ financial sustainability, they need to stay current with both Standard and Poor’s (S&P) and Fitch Ratings Inc. (Fitch) changes — which could affect their ability to obtain critical financing. This article discusses the revised rating criteria and explains their effects on hospitals. Because strong ratings are essential to minimizing the cost of debt, hospitals need to study the criteria changes and take the necessary steps to maximize their ratings.