Moody's Investors Service affirmed its "Aa3" and "Aa3/VMIG 1" ratings on Tupelo-based North Mississippi Health Service's outstanding rating bonds, affecting $156 million of debt.
The long-term affirmation is a result of several factors, including the health system's favorable market position, solid balance sheet metrics and modest debt burden. Moody's also acknowledged NMHS' weakened financial performance, unfavorable payer mix and additional debt.
The short-term rating affirmation is a result of the health system's ability to use liquidity for unremarketed bonds.
The outlook was revised to negative from stable, reflecting the health system's operating losses in fiscal year 2017 and weaker than average financial performance in fiscal year 2016.