Wait and see: Downgrade may affect some more than others

Evans, Melanie
August 2011
Modern Healthcare;8/15/2011, Vol. 41 Issue 33, p8
Trade Publication
The article discusses the impact of the downgrade of U.S. credit by Standard & Poor's from AAA to AA+ on the healthcare system. The AAA rating has been used to guarantee debt for small and rural hospitals, as well as to provide backing for hospital bonds with credit guarantees from failing commercial banks. According to the author, higher interest rates are expected, with most Federal Home Loan Banks that guarantee some hospital short-term bonds, included in the downgrade.


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