Moody's Investors Service has affirmed Iowa City, Iowa-based
The affirmation of the rating was based on a number of factors, including Mercy's good market position, improved financial performance and strong liquidity position.
Mercy's is located in an area of low unemployment and strong population growth. In addition, since the expansion of Medicaid in
The hospitals liquidity is strong, with 356 days cash on hand as of June 30. In addition, Mercy has more than four times maximum annual debt service coverage.
The hospital also faces some challenges, such as being vulnerable to physician departure and financial variability due to being a small hospital with $179 million in operating revenues.
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Fitch assigns 'BBB+' rating to Catholic Health Services of Long Island's bonds