The outlook for not-for-profit hospitals and systems in 2006 is “in a word, stable—in fact, good,” according to Bruce Gordon, senior vice president at Moody’s Investors Service. Noting that hospitals are in a “sweet spot,” compared to recent years, Mr. Gordon said that 2005 may well be one of the best years on record from a financial standpoint. He based his judgment on a record number of upgrades in 2005 and also that it was the first year since 1997 where credit upgrades exceeded downgrades. And based on preliminary medians, the key financial metrics improved materially in 2005.