Fitch Announces 2012 Not-For-Profit CCRC Median Ratios Exhibit Stability
The rating agency, Fitch Ratings announced last month that “median financial ratios for not-for-profit continuing care retirement communities exhibited stability in fiscal 2011.” The report went on to say “most operational, liquidity, and leverage metrics were in line with prior year performance, with some medians showing gains. Notably, median coverage of maximum annual debt service, including only turnover entrance fees, continued a positive trend, improving to 2.2x from 2x, year over year.”
The report also indicated a downward trend in growth – citing capital spending as a percentage of depreciation continuing its downward trend, hitting a five-year low at 86.7 percent. Despite the trend, “Management teams continue to focus on maintaining solid financial performance, in the face of a sluggish economy,’ said Michael Burger, director at Fitch Ratings and one of the report’s authors.
Additional information on the report can be found by clicking here.