Analysts at a firm that helps determine what companies pay for capital say the new U.S. health system changes could be easier on the credit ratings of health insurers than on the ratings of health care providers. Standard & Poor’s Financial Services has published the analysts’ views in a new global credit sector commentary.
Some health care companies may want to borrow money from lenders, or raise money by selling stock to investors, to cope with the new Patient Protection and Affordable Care Act (PPACA) programs and requirements. Companies pay less for capital when S&P and other rating agencies give them high ratings for soundness, and more when rating agencies give them low ratings.
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