S&P hits Verity Health System with downgrade, negative outlook after bankruptcy filing

S&P Global Ratings downgraded Redwood City, Calif.-based Verity Health System to “CC” from “CCC,” affecting about $325 million of debt.

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The downgrade is a result of the health system filing for Chapter 11 bankruptcy protection on Aug. 31. The rating reflects S&P’s view that the issuer may see no repayment over the next 12 months.  S&P also acknowledged the health system operates in a highly competitive market.

The outlook is negative.

Verity plans to continue services through the bankruptcy process and sell some of its assets, S&P said. 

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