The upgrade of the bonds by multiple notches from “B-” to “A+” reflects Wellstar’s credit profile, which appears to be able to absorb the Augusta system, now known as Wellstar MCG Health, even as the transaction is initially dilutive, S&P said.
Wellstar, which has come under criticism for the abrupt closure of two Atlanta medical centers in less affluent areas close to the takeover of Wellstar MCG Health, has pledged $800 million in investment over a 10-year period in Wellstar MCG.
A CreditWatch with negative implications placed on the affected 2018 revenue bonds was also removed, according to the note. The outlook is stable.
