CHICAGO — Standard & Poor's yesterday placed the A-plus underlying credit of Mercy Medical Center in Cedar Rapids, Iowa, on Credit Watch with negative implications as the shuttered hospital struggles to recover from the devastating floods that have hit the Midwest.
The action impacts about $90 million of debt sold in 1999, 2003, and 2005. The hospital was evacuated on June 13 as the Cedar River hit 20 feet above flood stage. Iowa's second largest city suffered widespread flooding that included the hospital's basement and ground floor, although water is now receding. The city served as the issuer for the debt.