Pittsburgh-based West Penn Allegheny Health System, which may be acquired by insurer Highmark under a recent proposal, saw its Standard & Poor’s credit rating move from negative to “developing” this week, according to a Pittsburgh Tribune-Review report.
The proposed affiliation between Highmark and WPAHS was announced last week, calling for the insurer to provide WPAHS with an immediate $50 million, up to $350 million in grants and loans once a definitive agreement is reached and $75 million to support a medical school, according to the report.
S&P says the proposed affiliation will determine whether WPAHS’ credit rating goes up or down in the next year. It also said WPAHS will remain solely obligated for its $748 million in bond debt along with $250 million in pension liabilities even if the merger does go through.
Read the Pittsburgh Tribune-Review report on West Penn Allegheny Health System’s credit rating.
Related Articles on West Penn Allegheny Health System:
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