S&P revises Mercy Health Services' outlook to stable

Standard & Poor's has revised the outlook to stable from negative and affirmed the "BBB" rating on Baltimore-based Mercy Health Services' bonds.

"The revised outlook reflects improved operating performance and debt service coverage and some balance sheet growth, though certain metrics remain below median levels due to very high debt," said S&P credit analyst Jessica Goldman.

The rating affirmation is based on several factors, including the stability provided by the Maryland rate-setting system, which diminishes the payer mix's effect, reduces the burden of uncompensated care and eliminates market power issues from health plan negotiators.

The stable outlook reflects S&P's expectation that Mercy will be able to sustain its recent improvement and continue to build balance sheet strength over time.

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars