Moody's assigns Mercy A2 credit rating with stable outlook
CEDAR RAPIDS - Moody's Investors Service has assigned initial A2 long-term and underlying ratings, with a stable outlook, to Mercy Medical Center, 701 10th St. SE. The credit analysis factors the financial performance of Mercycare Service Corporation and related organizations such as Mercy Care Management, Inc., physician practices, and the Mercy Medical Center Foundation.
Credit ratings indicate an institution's ability to repay debt and help investors analyze the credit risks associated with debt instruments. Mercy's strong rating also allows the hospital to access capital at reasonable rates needed to fund facility and equipment additions, replacement and improvements.
"We're very pleased that Moody's has affirmed our financial strength after a thorough review," says Phil Peterson, Mercy's Executive Vice President & CFO. "It affirms our flood recovery efforts and positive financial and operating performance despite the interruption we experienced from the flood and the nation's economic downturn. Financial soundness and resilience are critical to ensuring our ability to provide services to our community in difficult times. We look forward to continuing to serve our community as good stewards of our resources."
Another major rating agency, Standard & Poor's, had reaffirmed Mercy's A+ rating in September of 2008.