The past few years have seen overall improvement in many of the broad sector performance ratios and the ratio of downgrades to upgrades remains positive in 2006 after a strong year in 2005. The sector's strong performance overall has fueled a strong capital appetite to fund expansions and renovations. The overall cost of capital remains favorable, with many utilizing an active swap market. Overall credit quality is expected to remain stable for the near to intermediate term. Going forward overall sector performance, while strong now, faces a series of wide ranging pressures that will begin to dent overall income and cash flow although balances sheets and ratings profiles are expected to remain strong and stable for the near to intermediate term.

As a proactive leader in your organization, you need to find out the factors considered in assessing the capacity to repay debt and what Standard & Poor's expects of management and governance. As a key player in the rating process, it is imperative that you are aware of the latest information affecting bond ratings.