Standard & Poor's Ratings Services said it raised its long-term rating to A-plus from A on the $25.1 million series 2013 hospital revenue refunding bonds issued by Manhattan, Kan., for Mercy Regional Health Center (Mercy) in Manhattan.
The outlook is stable.
The rating reflects one notch of group support as the rating agency considers Mercy Regional Medical Center (which will be renamed Via Christi Hospital later this year) a "moderately strategic" subsidiary of Ascension Health (AA-plus/stable). On Feb. 28, 2014, Mercy fully joined Via Christi Health upon the transfer of Memorial Hospital Association's 50% interest in Mercy to Via Christi. In April 2013, Via Christi fully joined Ascension Health. All outstanding Via Christi bonds, except for those issued by Mercy, were called for redemption in June 2013.
"More specifically, the A-plus rating reflects our view of Mercy's sponsorship by and related benefits from Via Christi and by Ascension Health as its ultimate parent, robust operating performance, sound balance sheet metrics, favorable quality metrics, and historically acceptable payor mix," said Standard & Poor's credit analyst Karl Propst.
