CHICAGO--(BUSINESS WIRE)--Link to Fitch Ratings' Report: 2015 Median Ratios for Nonprofit Continuing Care Retirement Communities
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=870599
It appears to be steady as she goes for U.S. continuing care retirement communities (CCRCs) for the rest of this year and into 2016, according to Fitch Ratings in a new report.
Fitch's investment-grade (IG) median ratios CCRCs showed further improvement in core operating performance. Within the 'A' and 'BBB' rating categories, median ratios stayed mostly unchanged, while median profitability ratios were slightly better for 'A' rated CCRCs. Median capital spending across all rating categories showed a sharp increase in 2014, with the IG median rising to 106.6% last year from 86.4% in 2013. Capital spending rose the highest for 'A' (to 124.7% from 107.9% in 2013) and 'BBB' rated CCRCs (to 106.2% from 79.7%).
Also buoying the improved CCRC performance has been the broader housing recovery, with home prices rising and mortgage delinquency rates continuing decline.
Fitch's rating outlook for CCRCs, for the third straight year, is stable. 'The largest driver of negative rating pressure for CCRCs continues to be the impact of additional debt issued to fund campus renovations or expansions,' said Senior Director James LeBuhn.
Fitch's '2015 Median Ratios for Nonprofit Continuing Care Retirement Communities' is available at 'www.fitchratings.com' or by clicking on the above link.
Additional information is available at 'www.fitchratings.com'.
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