Wellstar has former Augusta Health bonds upgraded multiple notches

Marietta, Ga.-based Wellstar Health and Augusta (Ga.) University Health became one effective Aug. 30, and now some of the bonds previously owned by Augusta have been upgraded following the takeover, S&P said Sept. 22.

The upgrade of the bonds by multiple notches from "B-" to "A+" reflects Wellstar's credit profile, which appears to be able to absorb the Augusta system, now known as Wellstar MCG Health, even as the transaction is initially dilutive, S&P said.

Wellstar, which has come under criticism for the abrupt closure of two Atlanta medical centers in less affluent areas close to the takeover of Wellstar MCG Health, has pledged $800 million in investment over a 10-year period in Wellstar MCG.

A CreditWatch with negative implications placed on the affected 2018 revenue bonds was also removed, according to the note. The outlook is stable.

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