S&P revises outlook for Care New England after Partners deal dies

Ayla Ellison (Twitter) - Print  | 

On June 7, S&P Global Ratings revised its outlook for Providence, R.I.-based Care New England Health System from positive to stable.

The credit rating agency cut the outlook a few days after Boston-based Partners HealthCare decided to have its subsidiary, Brigham Health, withdraw an application to acquire Care New England.

"The withdrawal reflects recent developments within Rhode Island that made it clear a regulatory approval of the acquisition by Brigham Health was highly unlikely," Martin Arrick, an S&P Global Ratings credit analyst, said in a press release. "As a result, the likely improvement in our credit rating on CNE, which would have likely occurred had the merger proceeded, and which drove the positive outlook, will not occur."

In addition to revising its outlook on Care New England, S&P Global Ratings affirmed the health system's "BB-" long-term debt rating.

"The stable outlook and rating affirmation reflects CNE's vulnerable financial profile reflecting its long history of financial losses, combined with CNE's adequate enterprise profile," the rating agency said.

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