Lansing, Mich.-based Sparrow Health, which is due to be acquired by the Ann Arbor-based University of Michigan Health system, has had a series of bonds it holds placed on credit watch amid concern over the eventual outcome of the planned merger, Becker’s reports, citing a note from S&P Global.
Should the merger close, S&P said, the “A-” rating could be improved, but a downgrade is also possible if the merger fails to take place. In such a situation, the downgrade would be due to expectations of continued operating losses for Sparrow in 2023 as well as a possible default on the existing bonds. Read more.
