In June, Fitch affirmed West Penn’s “B+” rating, saying the health system was making continued progress with its finances. However, that same report said if West Penn’s merger deal with Highmark was not finalized, a “multi-notch negative rating action is likely to occur.”
West Penn officials said Fitch’s downgrade “was not unexpected given the weight of the previous rating being based upon an execution of a Highmark affiliation,” according to a news release.
Fitch analysts said West Penn’s credit situation will remain “volatile” for the near term and is dependent on litigation with Highmark over whether the health system can pursue other partners.
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