Moody's Investors Service has downgraded Cincinnati-based Mercy Health' ratings to "A2" from "A1" and to "A2/VMIG 1" from "A1/VMIG 1," affecting a total of $1.6 billion of debt.
The downgrade reflects Mercy Health's recent unexpected significant losses and liabilities regarding the wind-down of Mercy's HealthSpan operation, which will likely impair liquidity this year.
The outlook is negative, reflecting risks that the liquidity decline will be greater than predicted due to larger HealthSpan claims.
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