Unless operational results and long-term strategic goals are properly presented to rating agencies, ratings may not fully reflect the hospital's credit quality and could lead to a higher cost of funds.
Bond ratings are key factors in accessing the debt markets and should be actively managed. This is true regardless of whether or not a hospital plans to access the debt markets in the near future, or even when debt will be privately placed without being rated.
To view current hospital bond ratings, click here.
The rating process involves a variety of qualitative and human factors. If the process is not carefully managed, it can lead to less-than-optimal rating outcomes. This is common in turnarounds or situations where significant improvements are not being reflected in ratings, due to the fact that rating agencies are generally quick to downgrade and slow to upgrade. HFA professionals have "coached" a number of clients on improving ratings by developing effective communications strategies which include quantitative, qualitative and human aspects.
HFA rating consulting services include:
- Private rating process
- FIRM360 credit modeling
- Preparation of rating agency presentations
- Development of multi-year rating strategy
Call (813) 347-9150 or email to discuss your bond ratings with an experienced healthcare consultant.