Moody’s places Mercy Hospital ‘Baa2’ rating on review for downgrade

Moody’s Investors Service placed the “Baa2” rating on Iowa City, Iowa-based Mercy Hospital’s bonds under review for a downgrade, affecting approximately $74 million of debt.

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The potential ratings downgrade is based on several factors, including the hospital’s continued operational challenges and deteriorating operating performance during the first nine months of fiscal year 2017.

The agency’s review of the hospital will involve an analysis of the facility’s legal documents, liquidity profile and run-rate operating performance. Moody’s will also consider the hospital’s recent decision to affiliate with West De Moines, Iowa-based Mercy Health Network.

More articles on healthcare finance:
Fitch affirms ‘AA-‘ rating on Greenville Health System’s bonds
Fitch withdraws rating on St. Anthony’s Medical Center’s bonds
Fitch affirms ‘A-‘ rating on South Lake Hospital’s bonds

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