Mercy bond rating downgraded, not expected to hurt project

Mercy Medical Center officials said the downgrading of its debt rating by Moody?s Investors Service this week was expected and would not impact its upcoming sale of $300 million in bonds for a new inpatient tower.

“We think most investors will look at us as being undervalued, that we will outperform our rating and bonds will eventually appreciate,” Mercy CEO Thomas Mullen said. “Whenever you do large projects in our business you have to issue large debt, that hurts your balance sheet. When other things come through, your balance sheet looks better.”