S&P Global Ratings placed the "B-" rating on Longview, Texas-based Good Shepherd Medical Center's bonds on CreditWatch developing.
"The CreditWatch placement reflects the recent signing of a master agreement between Good Shepherd Health System, the sole member of GSMC, and 'A+'-rated Christus Health, in which Christus would become the sole corporate member of GSHS," said S&P analyst Patrick Zagar.
S&P believes GSHS integrating into Christus Health will allow for greater operating efficiencies and improve GSHS' market position.