Rating Agencies

Published in the January 2004 come in of Executive Insights How Do wander Agencies Evaluate Your trouble Practices? By: John L. Hess Ask healthc be executives to identify their biggest concerns, and one of the issues likely to be high on the list is lack of access to adequate capital. Faced with gain ground costs, inadequate payment, and increasing demand for capital, hospitals credit positions are first-class honours degree to decline. According to the Moodys Investor Ser offense August 2003 issue Not-For-Profit Healthcare: 2003 Outlook and Medians: The not-for-profit healthcare industry is moving toward a negative outlook and away from paygrade stability with the health check prognosis that the industry will face niftyer credit fussiness over at least the next one to cardinal number years. In such an environment, a positive credit say is more important than ever. Rating agencies make their decisions based on a hospitals pecuniary performance and intellectual nourishment market factors, besides the quality and effectiveness of focal detail and governance are also critically important in rating decisions. With the major scandals that have plagued the corporate world in recent years, the rating agencies are taking a adpressed look at how they evaluate management and governance.

Good Management and Governance Everyone agrees that well management and governance are important, but how do you lay out and measure them? Senior analysts at the rating agencies acknowledge that evaluating management and governance is subjective. Page 1 of 6 Governance. Because the b oard is ultimately obligated for ensuring a! n entitys financial health, rating agencies pay a great deal of care to the structure and role of the board. Moodys looks for boards that take an active, though not meddlesome, role in governance the organization. Pamela Federbusch, senior vice president in Moodys healthcare group, underscores the splendour of proper governance oversight. Enron scared everybody! she verbalize in a recent interview for this article....If you want to draw in a full essay, order it on our website: BestEssayCheap.com

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