Mercy Hospital and Medical Center, Chicago, missed its quarterly interest and principal payment for the second time this year. The hospital, with $58.3 million in outstanding bonds, was concerned about its liquidity -- currently at 41 days' cash in hand -- if it made the payment, according to a report by Standard & Poor's. The ratings agency said the 343-bed hospital's CC bond rating and outlook would not be affected by the missed payment, which was due March 23. Mercy is not in default and has sufficient funds in its debt-service reserve to make its next bond payment in June, S&P said. Although the hospital missed its bond payment in January, it paid up in February, S&P said in its report. Officials at Mercy could not be reached for comment at deadline. -- by Mark Taylor
Chicago hospital misses bond payment
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