Moody’s also affirmed the “Aa3” rating on approximately $513 million of Mercy’s outstanding debt.
The rating assignment and affirmation were supported by a number of factors, including the system’s track record of profitability, and the size and scope of Mercy’s operations. The system has hospitals in four states and a large integrated physician clinic.
The outlook revision was based on Mercy’s weaker operating performance in fiscal year 2014, and the system’s thin debt coverage ratios due to the issuance of the series 2014F bonds.
More articles on hospital and health system credit ratings:
Moody’s assigns ‘A3’ rating to Central Florida Health Alliance’s bonds
Moody’s revises Methodist Le Bonheaur Healthcare’s outlook to stable
Fitch assigns ‘AA-‘ rating to IU Health’s series 2014A revenue bonds
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