Moody’s rates MercyRockford Health System’s bonds, downgrades Mercy Alliance’s rating

Moody’s Investors Service has assigned an “A3” rating to Rockford, Ill.-based MercyRockford Health System’s proposed series 2016 bonds; affirmed MRHS’ “A3” issuer rating; and downgraded Janesville, Wis.-based Mercy Alliance’s rating to “A3” from “A2.”

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In January 2015, Mercy Alliance and Rockford Health System merged to create MercyRockford Health System.

MRHS’ “A3” rating assignment and affirmation are based on several factors, including its strong balance sheet resources and solid management team. Mercy Alliance’s downgrade is based on the parity position of all MRHS obligations effectuated with the issuance.

The outlook is stable, reflecting financial improvement and future benefits expected to be achieved from the merger.

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