TMCnet News
Fitch: 2013 Outlook for U.S. Nonprofit Continuing Care Retirement Communities Raised to StableNEW 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 residents. 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 http://www.fitchratings.com/creditdesk/reports/report_frame.cfm rpt_id=696500 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. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE 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 THIS SITE. |
