Heavy Health Care Exposure May Mean Rating Risk, S&P Say?

Chang, Helen
February 2005
Bond Buyer;2/3/2005, Vol. 351 Issue 32063, p6
Trade Publication
The article states that the credit ratings of bond insurers with heavy exposure to health care securities--especially large individual credits or lower credit quality borrowers--might be threatened by severe stress in that sector, according to Standard & Poor's analyst Dick Smith in a report last Wednesday. The agency last year identified healthcare as the most nettlesome sector for bond insurers--and it is likely to be the source of rating stress for them. Despite the cautionary comments he made in the report entitled "Bond Insurers Show Varying Sensitivity to Health Care," Smith said that no companies are currently in ratings jeopardy due to this research.


Related Articles

  • Buyers should pay for bond ratings. DINALLO, ERIC // Hudson Valley Business Journal;3/9/2009, Vol. 19 Issue 10, p19 

    The author discusses the need for investors to buy and control publicly available bond ratings. He states that insurance regulators, who use ratings to determine capital reserves for insurance companies can contract with rating agencies on a competitive basis to provide public ratings of issuers...

  • All credit ratings not created equal.  // Biomedical Market Newsletter;9/26/2011, Vol. 21, p608 

    The article reports that researchers from Rice University, American University, and Indiana University have unanimously found that at least one of the major credit ratings agencies exaggerated credit scores of private debt against public bonds over the last 30 years.

  • The Use of Projected Performance Sparks Some Second-Guessing. Carpenter, Sheri // Bond Buyer;04/06/2000, Vol. 332 Issue 30865, p7 

    Focuses on major rating agencies' practice of basing ratings on expectations of future performance. Series of bond rating downgrades in the health care sector; Controversy over the rating methodology; Rating agencies' contrasting approaches to the health care sector.

  • Farmer Mac: Rating Would Hurt. News, Bloomberg // American Banker;7/30/2004, Vol. 169 Issue 146, p7 

    Announces that Farmer Mac, which buys and guarantees agriculture loans, expects its business to be diminished by a proposed regulation that would make it obtain a credit rating. The Farm Credit Administration's proposal to link capital that banks must hold against Farmer Mac assets to its...

  • More Corporate Ratings? Shields, Yvette // Bond Buyer;6/26/2006, Vol. 356 Issue 32410, p1 

    The article reports on the opening of a market comment on a plan to extend the corporate rating equivalent of Moody's Investors Service Inc. in the U.S. Naomi Richman, chief credit officer of Moody's, has stated that there is a need to be able to translate the municipal rating on the same scale...

  • MONITORED LIST.  // Dow Theory Forecasts;5/9/2005, Vol. 61 Issue 19, p9 

    The article reports on monitored list supplement which provides investment ratings and other key data on 173 monitored stocks. Stocks are rated with five terms. Focus Buys represent the top picks for 12-month gains. Buys are expected to meaningfully outperform the market over the next 12 months....

  • Rating Changes.  // Bond Buyer;9/9/2005, Vol. 353 Issue 32214, p29 

    Presents a chart depicting bond rating changes in the U.S. as of September 2005.

  • ILLINOIS: A Negative Blessing. Carvlin, Elizabeth // Bond Buyer;9/27/2006, Vol. 357 Issue 32475, p35 

    The article reports on the revision of Standard & Poor's Corp.'s outlook for the bonds issued for Blessing Hospital by the Illinois Health Facility Authority and the city of Quincy in Illinois. The rating agency has changed the rating from stable to negative, citing the failure of the hospital...

  • WHAT IS THE NEW TRIPLE-A ? Colomer, Nora // Asset Securitization Report;Oct2009, Vol. 9 Issue 17, p18 

    The article discusses the move of U.S. credit rating agencies' (CRAs) to build their brands as they face criticism from market experts. As to Diane Westerback, managing director of structured finance of Standard & Poor's Corp. (S&P), the position of their company is better for they can execute...


Read the Article


Sign out of this library

Other Topics