For-profit hospital providers have a stable operating outlook and positive credit ratings in the near term, said Megan Neuburger, a director in the corporate finance group at Fitch Ratings.
“Since the beginning of 2010, we’ve placed five of our six for-profit hospital provider ratings on positive outlook,” Neuburger said. “What that indicates is that over the next 12 to 24 months, ratings across the sector will likely migrate upwards by about one notch on average.”
This optimism stems from a stable operating outlook that may continue through early 2012 and a confident liquidity profile, which hospitals built up by taking advantage of strong debt capital markets.
“We don’t have a lot of concern about near-term debt maturities; we don’t have a lot of credits with negative free cash flow profiles,” Neuburger said. “We do have some concern in that area, but it’s relatively limited.”
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