CHICAGO (S&P Global Ratings) Jan. 19, 2022--S&P Global Ratings placed its 'AA-' long-term rating on debt issued by various issuers for Providence St. Joseph Health (Providence), Wash., on CreditWatch with negative implications. The CreditWatch placement reflects the recently announced separation of Hoag from Providence at the end of January 2022. "While full details are not yet available, and while Hoag Health is a much smaller entity than Providence, we believe that the separation will put some financial strain on Providence," said S&P Global Rating credit analyst Suzie Desai. "Providence already has a lighter overall financial profile relative to the rating, primarily given that Hoag will leave the system with sizable unrestricted reserves," Ms. Desai added.
