|[December 12, 2012]
Fitch: 2013 Outlook for U.S. Nonprofit Continuing Care Retirement Communities Raised to Stable
NEW YORK --(Business Wire)--
The outlook for nonprofit continuing care retirement communities (CCRCs)
has been raised to stable from negative for 2013, reflecting continued
stability in financial performance and a slight improvement in the
external forces, according to a new report from Fitch Ratings.
'The improving outlook in the U.S. housing market and a very low
interest rate environment, which has allowed communities to refinance or
borrow at historically low fixed rates, are positive signs for the
industry,' said Jim LeBuhn, Senior Director at Fitch.
Despite a challenging environment, Fitch's rated borrowers have achieved
stable financial performance by focusing on expense control, enhancing
revenue through expanding short-term rehabilitation and home care
services, and implementing marketing strategies to increase sales.
Despite many metropolitan statistical areas (MSAs) stabilizing and
beginning to stage a turnaround, some key MSAs remain under pressure
struggling with a backlog of distressed inventory and long liquidation
timelines. Other locations that have not experienced a correction
post-crisis, such as San Francisco and the DC suburbs, still appear
overvalued on a fundamental basis.
Independent living (IL) occupancy has stabilized for the first time
since 2008. Fitch expects IL occupancy to further improve in 2013 due to
management's marketing initiatives and increased demand from potential
Fitch will host a conference call to disuss its 2013 US Healthcare
outlook on December 13th at 2:00 PM eastern.
Dial-in details are:
--U.S. Participants: +1-877-467-8597
--International Participants: +1-706-643-6296
--Conference and Replay ID: 73935205
Replays will be available for 30 days. Replay dial-ins are accessible
using the following numbers:
--U.S. Replay: +1-855-859-2056
--International Replay: +1-404-537-3406
For more information, a special report titled '2013 Outlook: Nonprofit
Continuing Care Retirement Communities' is available on the Fitch
Ratings web site at www.fitchratings.com
or by clicking on the link below.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: 2013 Outlook: Nonprofit
Continuing Care Retirement Communities
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING
THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.
AVAILABLE ON (News - Alert) THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'.
PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS
SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS
OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES
AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF
[ InfoTech Spotlight's Homepage ]