S&P Global Ratings upgraded Columbia, S.C.-based Palmetto Health's rating to "A" from "BBB+."
The upgrade is a result of Palmetto Health's merger with Greenville (S.C.) Health System, finalized Nov. 21, 2017. The merger created a new combined organization under the same parent company, SC Health Co.
"In our opinion, the merger has created significant opportunities for cost synergies based on SCHC's combined size and scale, and creates an opportunity for the new health system to respond to the issues and changes in the healthcare sector," said S&P credit analyst Margaret Carr.
The outlook is stable, reflecting the merged organization's strong market share as well as its expectation of improved earnings after the merger.