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Friday, July 04, 2014

Moody's to downgrade Maryland

Moody’s Investors Service downgraded Howard University’s credit rating Thursday for the second time in less than a year, citing a “precipitous deterioration” in the financial condition of the university’s teaching hospital.

The university’s new rating of Baa3, down from Baa1, is the lowest investment-grade rating from Moody’s on a scale that runs from Aaa to C. It means that Moody’s analysts consider revenue bonds issued on behalf of the private university in Northwest Washington to be a moderate credit risk for investors.

Until last September, Moody’s had given Howard’s debt an A3 rating, which indicated a low credit risk.

A major problem, Moody’s said, is an estimated $37 million operating loss for the university-owned hospital in the fiscal year that ended June 30, a result of declining patient admissions and other financial strains. Overall, the university operates on revenue of roughly $840 million a year. Patient service at the hospital in recent years has produced about 30 percent of annual revenue.

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3 comments:

Anonymous said...

It's never good to be seeded first going into the season.Some other team/state or whatever underdog will come along and take over.Way too much pressure involved in remaining #1.Md is in the perfect position to finish 1st.

Anonymous said...

The people in charge probably make a fortune.

Anonymous said...

Why is the head line "Moody's to downgrade Maryland"

The Washington Post article is about the credit rating of Howard University.

Sand Box John