Moody’s Investors Service last week confirmed its Baa3 rating on Memorial Healthcare, Mich. and removed the rating from under review. The outlook is positive, Moody’s said.

The move comes after financial improvement in fiscal 2012 and a new management team that has implemented a number of new programs, analysts said.

Challenges remain, including the recent departure of the CEO and several board members, including the chairman, Moody’s said.

Memorial, a small community hospital located in Shiawessee County between Lansing and Flint, has also suffered several years of declines.

But operating performance has improved over the last two years, and a low debt burden has meant relatively strong debt-service coverage levels, analysts said.

“The hospital has above-average debt service coverage ratios and is supported by strong balance sheet metrics, an upgrade will depend on the degree to which management is successful at integrating employed physicians and navigating the changes at the board level,” Moody’s said in a release on the hospital.

Memorial has $7.7 million of bonds issued in 1999 by the Michigan State Hospital Finance Authority.

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