Fitch Ratings has affirmed the "BB+" rating on $70.8 million in series 2000 revenue bonds secured by the gross revenues of Mercy Medical Center in Canton, Ohio.
MMC is a 475-bed teaching hospital that had total operating revenues of $283.2 million in fiscal year 2013.
The affirmation was based on a number of factors, including the hospital's improved performance in 2013 and through the six months ended June 30. MMC posted a 0.7 percent operating margin in 2013 compared to negative 6 percent to 7 percent operating margins the previous three years.
The hospital had stronger maximum annual debt service coverage in 2013 than in 2012 due to improved cash flow. MMC also has recovering patient volume and has implemented cost control initiatives.
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