Moody’s revises Mercy Hospital’s outlook to negative

Moody’s Investors Service has revised Iowa City, Iowa-based Mercy Hospital’s outlook to negative from stable and affirmed its “Baa2” rating, affecting approximately $76 million of outstanding revenue bonds.

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The outlook revision is based on several factors, including Mercy’s unstable budget throughout the first nine months of fiscal year 2016.

The rating affirmation reflects Mercy’s maintenance of a strong cash position relative to expenses and debt.

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