Moody's assigns 'A2' rating to Mercy Health's bonds

Moody's Investors Service assigned its "A2" rating to Cincinnati-based Mercy Health's proposed $494.5 million series 2017A, $90.3 million series 2017B and $139.6 series 2017C.

Concurrently, Moody's affirmed its "A2" rating on Mercy Health's outstanding debt, affecting 1.5 billion.

The assignment and affirmation are a result of several factors, including Mercy Health's large presence, strong market position, improving margins and conservative near-term capital spending. Moody's also acknowledged the health system's high leverage, moderate liquidity metrics, high reliance on government payers and a highly competitive market.

The outlook is stable, reflecting Moody's expectation that the health system will experience near-term margin stability and revenue cycle improvements to offset any cuts to Medicare.

More articles on healthcare finance:
10 grants, donations to healthcare organizations in November
10 recent hospital, health system outlook and credit rating actions
Jackson Health System posts a profit for 6th consecutive year

© Copyright ASC COMMUNICATIONS 2018. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.


Top 40 Articles from the Past 6 Months