Moody's Investors Service has affirmed the "A2" rating assigned to Janesville, Wis.-based Mercy Alliance's bonds issued by the Wisconsin Health & Education Facilities Authority.
The affirmation of the rating was based on a number of factors, including Mercy's multi-year trend of solid operating margins and growth in absolute liquidity, which has translated into better debt coverage.
The hospital had a 2.6 percent operating margin and a 9.6 percent operating cash flow margin in fiscal year 2013. As of June 30, Mercy had 208 days cash on hand.
The stable outlook rating reflects the expectation that the hospital will continue to record an operating cash flow margin at least in-line with A2 medians and liquidity and debt coverage rations being sustained in coming years.
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