This document outlines the argument for a publicly traded health care organization to issue stocks or bonds as part of its capital structure, especially following a credit rating downgrade. The downgrade may lead to increased borrowing costs and decreased investor confidence, impacting the organization’s financial stability. Management could mitigate these effects by strengthening investor relations and reassessing capital allocation strategies to boost financial health.

1. Capital Structure
Create an argument for a publically traded health care
organization to issue stocks or bonds as part of its capital
structure. Provide support for your position.
Imagine that a publicly traded health care organization has just
experienced a downgrade in its credit rating from a rating
agency, such as Moody’s or Standard & Poor’s. Determine the
most likely impact that this event would have on the publically
traded health care organization. Indicate an approach that
management could take to minimize the impact that you have
determined. Provide support for your rationale.
Use at least one reference: