New Moody's report: Risk of covenant violations has decreased but remains heightened 

The risk of not-for-profit hospitals and health systems violating bond covenants has eased for 2024, but remains heightened, according to a report from Moody's Investors Service. Moody’s reports 21 providers that they rate violated at least one financial covenant since January 2022, and that most received a waiver or reached forbearance agreements and amendments with lenders. The report predicts a substantial portion of providers will continue to grapple with weak operating cash flow margins and remain at elevated risk of a violation. Proactive management can help avoid deterioration in credit quality or a default, the report says.