West Penn Allegheny's S&P Rating Goes from Negative to Developing After Proposing Highmark Merger

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:
Highmark to Acquire Pittsburgh's West Penn Allegheny Health System
Christopher Olivia Steps Down as President, CEO of West Penn Allegheny
Pittsburgh's West Penn Allegheny, Highmark May Form New System with Cleveland Clinic

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