Mosaic Life Care announced this week that Moody’s Investors Service has affirmed its A1 credit rating.

According to Moody’s this action affects approximately $119 million of rated debt outstanding issued through the Missouri State Health & Educational Facilities Authority and the St. Joseph Industrial Development Authority. The outlook remains stable.

“Having a strong credit rating is not something Mosaic Life Care takes for granted, and we are appreciative of the confidence Moody’s Investors Services has in our organization,” said Dwain Stilson, Chief Financial Officer with Mosaic Life Care. “Our solid balance sheet and the market share in our primary service area were key contributors in the rating outcome. We will work on our operational plans to enhance our margin, but we remain confident in the organizational planning processes we have in place and those we are implementing.”

In FY 2016, the hospital saw 15,371 inpatient admissions and 1,006,954 outpatient visits.

According to Moody’s Investors Service, A1 is based upon Mosaic’s continued growth in unrestricted liquidity, moderate debt position, and long track record of consistent operating performance. While operations continue to be challenged by the shift from inpatient to outpatient services and pressured reimbursement by government payors, management continues to implement many initiatives to preserve healthy financials including a plan to terminate the defined benefit pension plan this year. The rating continues to reflect a dominant market position as a Sole Community Hospital provider in St. Joseph, MO, though constrained by a high concentration of governmental and self-pay payors, a large employed-physician group, and expansion into the more competitive Kansas City service area.