AUGUSTA (S&P Global Ratings) May 31, 2024--Thomas Jefferson University, Pa. (TJU; A/negative) and Lehigh Valley Health Network, Pa. (LVHN; A+/negative) announced on May 15, 2024 that they had signed a definitive agreement to merge. The decision is pending regulatory approval. Once closed, we expect each organization to be core to the combined group under our group rating methodology, and therefore, we will harmonize the ratings regardless of the debt structure. We believe that the rating on the combined organization will likely be in the 'A' category, and therefore, the negative outlooks remain applicable. Upon closing, our final analysis will incorporate a deeper understanding of the strategies for the combined organization as well as synergies from the enhanced size and scale.
