Moody's Investors Service has affirmed the "Baa2" rating assigned to Mercy Health Services' approximately $237 million of revenue bonds issued through Maryland Health and Higher Educational Facilities Authority.
The rating affirmation was supported by a number of factors, including Mercy Health Services' "history of favorable operating margins at the 'Baa2' rating level, favorable rate structure under the state's global budget revenue contract, and steady improvement in liquidity ratios," according to Moody's.
Mercy Health Services also faces some challenges, which were considered for the rating affirmation, such as "a competitive service area," as well as "stressed, albeit improved, leverage ratios," according to Moody's.
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