Moody’s Investors Service revised its outlook to negative from stable on Cardinal Health System’s Baa2 rating as the central Indiana provider struggles with growing competition, a weak economy, and an $8.8 million operating deficit in fiscal 2007.

The system carries $143 million of outstanding debt. Moody’s revision affects $79 million of outstanding bonds issued in 2006. Cardinal’s debt is secured by a revenue pledge of the obligated group as well as a mortgage on the Ball Memorial Hospital campus. The obligated group consists of Ball Memorial, Cardinal Health System, and Blackford Community Hospital. The system’s bonds are issued through the Delaware County Hospital Authority.

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