Moody’s Investors Service affirmed the Baa1 rating assigned to Boston Medical Center’s bonds, and revised the outlook to stable from negative.

The rating agency cited the MassHealth, or Medicaid, waiver for three years until June 2014, which provides up to $103 million in annual revenue to Boston Medical, and to the hospital group’s improvement in improving core operating performance.

According to Moody’s credit analysts, the rating reflects Boston Medical’s importance as a safety net provider for the city.

“The rating is constrained by the hospital’s significant operating losses absent supplemental funding,” Moody’s analysts added.

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