Moody's Investors Service has assigned an "Aa3" rating to Chesterfield, Mo.-based Mercy Health's planned $357 million of series 2014F fixed rate revenue bonds and revised the system's outlook to negative from stable.
Moody's also affirmed the "Aa3" rating on approximately $513 million of Mercy's outstanding debt.
The rating assignment and affirmation were supported by a number of factors, including the system's track record of profitability, and the size and scope of Mercy's operations. The system has hospitals in four states and a large integrated physician clinic.
The outlook revision was based on Mercy's weaker operating performance in fiscal year 2014, and the system's thin debt coverage ratios due to the issuance of the series 2014F bonds.
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