The bond rater downgraded the sector on March 25, 2020 to negative, and reaffirmed that rating in January 2021.
The outlook for the nation's not-for-profit healthcare sector -- rocked for more than one year by the coronavirus pandemic – has been upgraded from negative to stable by S&P Global Ratings.
The bond raters downgraded the sector on March 25, 2020 to negative, and reaffirmed that rating in January 2021.
S&P cited several reasons for the return to a stable outlook, including:
* A trend of revenue recovery, ongoing balance sheet strength, and proactive management teams' focus on maintaining financial stability;
* Declining risk levels that are consistent with pre-pandemic years when the outlook was stable;
* CARES Act funding over the past 15 months that propped up providers and helped curtail the negative and downside risk from the pandemic;
* Generally stable or positive outlooks for about 85% of S&P's rated healthcare organizations.
The upgrade for the not-for-profit healthcare sector means that all U.S. public finance sectors are stable in U.S., except higher education, including community colleges and student housing.
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.
KEY TAKEAWAYS
S&P cited several reasons for the return to a stable outlook, including CARES Act funding over the past 15 months that propped up providers and helped curtail the negative and downside risk from the pandemic;
The upgrade for the not-for-profit healthcare sector means that all U.S. public finance sectors are stable in U.S., except higher education, including community colleges and student housing.