Fitch Ratings placed Brentwood, Tenn.-based LifePoint Health's outstanding bond ratings on rating watch negative after the hospital operator announced it would be acquired by private equity firm Apollo Global Management.
If the transaction announced July 23 passes regulatory approvals, LifePoint would be combined with Brentwood-based RCCH HealthCare Partners, the health system operator Apollo owns.
Fitch said it believes the acquisition will be a leveraging transaction, which is why the agency issued the rating watch negative. Fitch noted, however, that the issuer has not yet disclosed details on the transaction's financing or the combined entity's post-closing capitalization.
LifePoint's current issuer default rating is "BB."