Moody's Investors Service affirmed its "Baa2" rating on Baltimore-based Mercy Health Service's bonds, affecting about $222 million of debt. At the same time, Moody's revised its outlook to positive from stable.
The rating affirmation is a result of Mercy's favorable operating margins, improving liquidity metrics and limited capital spending plans. Moody's also acknowledged the health system's above-average leverage and heavy debt burden.
The positive outlook reflects Moody's expectation that the health system will maintain strong operating margins and continue to improve liquidity.