S&P Global Ratings assigned its "A-" rating to Johnson City, Tenn.-based Ballad Health's $514 million series 2018A bonds.
Ballad Health is new health system formed by the merger of Kingsport, Tenn.-based Wellmont Health System and Johnson City-based Mountain States Health Alliance.
As a result of the merger, S&P concurrently upgraded the rating on MSHA's outstanding bond to "A-" from "BBB+" and Wellmont's outstanding bonds to "A-" from "BBB+."
The upgrade and assignment are a result of Ballad Health's robust size and scale, strong management and favorable financial profile. In addition, S&P favorably viewed the merger.
The outlook is stable, reflecting the new system's dominant market position and favorable financial profile.