Moody's Investors Service has affirmed the "Baa2" rating assigned to Corinth, Miss.-based Magnolia Regional Health Center's outstanding bonds issued through the Mississippi Development Bank and revised the hospital's outlook to stable from negative.
The rating affirmation was supported by a number of factors, including MRHC's leading inpatient market share in its service area. The rating affirmation was also based on the hospital's improved operating performance in the later part of fiscal year 2014.
The outlook revision was based on MRHC quickly addressing issues it had in the first quarter of fiscal 2014, such as a decline in patient volume and in cash flow generation. In the first quarter of this year, the hospital's operating cash flow margin fell to 7.5 percent. However, MRHC was able to rebound in the later part of fiscal 2014, with its operating cash flow margin improving to 12 percent.
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