S&P keeps LifePoint Health view on watch

S&P said it affirmed its BB- issuer credit rating on LifePoint Health Inc. The ratings remain on CreditWatch, where S&P placed them with negative implications on July 24, 2018.

The CreditWatch negative placement reflected its announcement that it will be acquired by RegionalCare Hospital Partners Holdings Inc. for approximately $6.1 billion.

“Following new detail around the combined company's capital structure, we now expect that the transaction will result in pro forma adjusted net leverage of about 6.2x for 2019, declining to around 5.5x within two years, meaningfully higher than Lifepoint's historical leverage levels in the high-3x to low-4x range,” S&P said in a news release.

“For this reason, we expect to lower the rating on Lifepoint to B upon transaction close, consistent with our rating on parent RCCH. We expect the transaction to include the redemption of LifePoint's outstanding senior secured and unsecured debt, and expect to withdraw the ratings on that debt on transaction close.”

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