Moody’s health ser­vice firms have $42.2 bil­lion due by ’14

Modern Healthcare - - Late News -

Moody’s In­vestors Ser­vice, New York, said in­vestor-owned health­care ser­vices com­pa­nies face $42.2 bil­lion in bank credit fa­cil­i­ties and bonds that come due by the end of 2014. Moody’s be­lieves that they will be able to re­fi­nance thanks to their mod­est com­pany-spe­cific risk and the re­turn of in­vestor ap­petite for high­yield cor­po­rate bonds. All but $200 mil­lion of the debt com­ing due is rated as spec­u­la­tive grade, or be­low in­vest­ment grade. Moody’s also noted that health­care spec­u­la­tive-grade is­suers as a whole paid down $5.6 bil­lion of their 2010-14 ma­tu­ri­ties with new debt within the past six months. Fa­cil­i­ties-based ser­vices ac­count for two-thirds of the amount owed by these is­suers. Hos­pi­tal com­pa­nies make up three of the top five for the amount of spec­u­la­tive-grade debt due by the end of 2014. Nashville-based HCA is tops with $13.8 bil­lion.

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