S&P downgraded CHI’s rating to “BBB+” with a stable outlook in March. That same month, the debt rating agency affirmed Dignity Health’s “A” rating with a negative outlook.
“We said at the time that, as the smaller and higher rated organization, Dignity Health would likely be downgraded as its overall financial profile would be initially diluted,” S&P stated in a Dec. 7 bulletin. “We stand by that assessment.”
S&P’s rating outlook on CHI remains stable, as the merger would be beneficial to the health system’s financial metrics.
S&P said it will likely update CHI and Dignity Health’s respective ratings before the merger deal closes.
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