Tuesday, September 2, 2008

Declining Liquidity = Low Bond Ratings for Hospitals

Per a recent statement made by Standard & Poors (S&P), hospital bond ratings across the U.S. have plummeted due to continued declines in liquidity.

Because interest rates are based upon the creditworthiness of the issuer and the conditions in the financial market, many hospitals and healthcare providers are finding it more and more difficult to get and maintain a positive bond rating.

SCH's MAR Funding program can provide a much needed boost to hospitals' and healthcare providers' credit ratings. MAR funding is not dependent on the availability of credit and serves as a source for working capital that can actually be used to improve liquidity.

By using the cash flow generated from MAR funding as working capital, profitability can be restored and a healthier balance sheet can be attained.

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