Non-profit CCRC Sector Still Stable, Not Without Challenges

After several rocky years post-recession, non-profit continuing care retirement communities have maintained a “stable” rating from Fitch Ratings since being improved from negative to stable in September, according to a 2014 Outlook on nonprofit CCRCs released by the agency.  “Consistent financial performance over past two years has been helped by an operating environment that has significantly […]

Fitch Improves CCRC Rating Outlook on Creative Marketing, Reinvestment

Creative, aggressive marketing plans and increased capital spending contributed to boosting Fitch’s ratings outlook for not-for-profit continuing care retirement communities (CCRCs) from negative to stable as median ratios for investment grade borrowers were mostly stable in 2012.  “As in the years since 2008, management teams utilized tight expense controls, creative marketing plans, and better skilled […]

Fitch: No Impact to CCRC Ratings Expected from FASB Entrance Fee Refund Changes

Changes issued earlier this year by the Financial Accounting Standards Board (FASB) regarding refundable entrance fees for continuing care retirement communities (CCRCs) aren’t expected to impact community ratings, according to a new Fitch Ratings report, but consumer reassurance may be required as a result. The change has to do with whether income from refundable entrance fee […]

Want Greater Access to Capital? Consider Seeking a Credit Rating

Credit ratings can be useful for senior living providers—even the smaller companies—for improving access to capital, gaining economic value through demonstrating financial health, and benchmarking performance against other similar organizations, said a group of panelists during an online senior living conference held in March, reports Healthcare Finance. “At its core, credit ratings provide transparency and […]

Fitch: 2012 Should be Good for Nonprofit Healthcare Systems Ratings

In the next year, Fitch Ratings expects the nonprofit healthcare systems and hospital sector to receive predominantly affirmative ratings, reflecting the industry’s ability to maintain profit margins and mitigate reimbursement fluctuations, according to its 2012 Outlook Report. However, rating or rating outlook changes that do occur in 2012 are more likely to be downgrades rather […]