Moody's Investors Service has affirmed Ames, Iowa-based Mary Greeley Medical Center's "A2" bond rating, which affects $64 million of series 2011 fixed rate revenue bonds.
The hospital's strengths, such as its good operating performance and strong liquidity ratios, supported the rating affirmation. For fiscal 2014, MGMC had an adjusted 15 percent operating cash flow margin. In addition, the hospital had 556 days cash on hand at fiscal year end 2014.
The hospital also faces some challenges, which were considered for the rating affirmation, including having a small revenue base for an "A2" rated hospital.
MGMC has a stable outlook, which, according to Moody's, reflects the expectation that the hospital "will continue to generate good operating margins and maintain strong liquidity ratios during and after the remaining phases of the series 2011 construction project."
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