Moody's Affirms Crittenton Hospital Medical Center's 'Baa3' Rating, Outlook Negative

Moody's Investors Service has affirmed Rochester, Mich.-based Crittenton Hospital Medical Center's "Baa3" bond rating on $105.5 million of outstanding bonds issued by the Michigan State Finance Authority.

The affirmation of CHMC's bond rating was based on a number of factors. CHMC showed improved performance in the first five months of 2014, which was driven by new senior management's revenue enhancing and expense saving initiatives. Through the first five months of 2014, CHMC had a positive operating margin of 0.5 percent and an operating cash flow margin of 9.8 percent.

The hospital also benefits from its demographically favorable service area and consistent market share, as it is the only hospital located in Rochester, Mich.

CHMC also currently faces challenges, such as its position as a small stand-along hospital in the greater metro-Detroit market. The hospital has posted operating losses for the last four years.

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