S&P Global Ratings affirmed its "BB-" rating on Providence, R.I.-based Care New England and revised its outlook to developing from negative as the health system works to secure regulatory approval for its deal with Boston-based Partners HealthCare.
"The developing outlook reflects our view of CNE's upside potential for the rating given the definitive agreement recently signed by CNE and Partners, thereby formalizing Partners' planned acquisition of CNE pending approvals by both Rhode Island and Massachusetts regulators," said S&P credit analyst Jennifer Soule.
The developing outlook also indicates a potential downside, which is reflected by CNE's weak financial performance, unhealthy balance sheet metrics and fluctuating patient volume trends.