July 24, 2013
Moody's Investors Service downgraded the credit rating of Temple University Health System by one notch, to "Ba2" from "Ba1" and gave the Philadelphia health system a negative outlook. The downgrade was based on the expectation of substantial operating losses in the fiscal year ended June 30 and other factors, Moody's said. All of Temple Health's debt has fixed interest rates, which means the change will not force Temple to make higher interest payment on the $525 million of debt affected by the downgrade.
February 24, 2013
In the Region Aramark to sell $1B in notes Aramark Corp. , of Philadelphia, the privately held food concessionaire, plans to sell $1 billion of senior notes to refinance debt. The company intends to sell seven-year bonds that may be rated B3 by Moody's Investors Service , according to a person familiar with the offering who asked not to be identified, citing lack of authorization to speak publicly. Aramark is raising funds as it begins a tender offer, announced Thursday, to buy back as much as $2.38 billion of outstanding obligations.
February 23, 2013
A planned $48 million borrowing by the Burlington County Bridge Commission was assigned an Aa2 rating with a "negative" outlook by Moody's Investors Service on Friday. The bond rating reflects Moody's assessment of the bonds as high quality and a very low credit risk, while the negative outlook was prompted by the county's debt level and Moody's concerns that "the county's narrowed financial reserves will be challenged to grow to adequate levels over the near-medium term. " The general obligation bonds are expected to be sold next Thursday, with the proceeds to be used to refinance existing debt at lower interest rates.
April 17, 2012 |
It's not enough, Wall Street says: Despite Gov. Corbett's cuts to colleges and poor people, Moody's Investors Service has slapped a "Negative Outlook" warning on Pennsylvania as the state prepares to borrow $950 million in a general-obligation bond sale. (Moody's rated the issue Aa1, among the highest investment grades. When rates go down, borrowing costs tend to rise.) "Revenue shortfalls" from the current fiscal year, which runs through June, threaten to "deplete much of the financial gains made in fiscal 2011," and the multibillion-dollar long-term shortfalls facing the State Employees' Retirement System and the Public School Employees' Retirement System "will materially challenge" the state's long-term finances, even as school districts boost property taxes and state officials prepare for higher public payments into both pension systems, warned a team of Moody's analysts headed by BayeLarsen.
March 29, 2012 |
A union representing health-care workers is raising more concerns over the proposed restructuring of higher education in New Jersey, including questions about the apportionment of debt between Rutgers University and the University of Medicine and Dentistry of New Jersey. A white paper titled "The Reorganization of UMDNJ: Getting It Right," by the Health Professionals and Allied Employees (HPAE), representing 4,000 nurses, medical researchers, and other health professionals at UMDNJ, poses 65 questions it says need answering before the university could be carved up, with pieces given to Rutgers.
August 7, 2011 |
WASHINGTON - Credit rating agency Standard & Poor's on Friday downgraded the United States' credit rating for the first time in the history of the ratings. The credit-rating agency said that it was cutting the country's top AAA rating by one notch to AA-plus. The credit agency said that it was making the move because the deficit-reduction plan passed by Congress on Tuesday did not go far enough to stabilize the country's debt situation. A source familiar with the discussions said that the Obama administration believes the S&P's analysis contained "deep and fundamental flaws.
January 31, 2011 |
The new Please Touch Museum has won adoration from 6-year-olds and other important critics, and its move to Memorial Hall undoubtedly kept a rare architectural artifact of the 1876 Centennial Exposition from sliding into irretrievable decrepitude. But a little more than two years after moving from its small-scale Center City home to more expansive - and expensive - digs in Fairmount Park, the Please Touch Museum is struggling with a dip in membership and attendance and with debt payments that are large and growing.
August 9, 2009 |
When Moody's Investors Service released a mixed report on New Jersey's financial outlook last week, Republicans seized the opportunity to argue that the state's financial glass was half empty. Democrats saw it as half full. Both sides are motivated, in part, by the intense governor's race, but each perspective has validity. The credit rating helps to determine how much interest the state will pay to borrow money for capital projects, although the markets do not always act in the way that a credit rating would seem to suggest.
June 16, 2009
UH-OH: The city's not out of the woods yet. Last week, a major credit-rating agency issued a "negative" outlook on Philadelphia's ability to pay back its debt. It's another reminder that the city's plan to deal with the $1.4 billion budget gap has major risks that must be navigated. The statement, made by Moody's Investor Services, could make it harder for Philadelphia to borrow money. Moody's gives local governments ratings based on perceived ability to repay debt. It's similar to a personal-credit score, but for cities.
January 6, 2006 |
Ford Motor Co.'s credit rating, already classified as junk-grade, was lowered two levels yesterday by Standard & Poor's Corp., which cited "increased skepticism" that Ford can turn around its North American operations. S&P also downgraded Ford's financial arm, Ford Motor Credit Co. The agency cut the ratings for both to "BB-" and assigned Ford a negative outlook. Junk bonds are defined by S&P as those having ratings below "BBB-. " S&P first lowered Ford into non-investment, or junk, grade status last year; the latest move will make it even harder for Ford and Ford Credit to borrow money.