S&P puts MultiPlan on developing watch

Standard & Poor's said it placed MultiPlan Inc.'s B+ counterparty credit rating and B+ senior secured debt rating on CreditWatch with developing implications following the announcement that MultiPlan will be acquired by The Carlyle Group, a global private equity firm.

The developing implications reflect the uncertainty related to the financing and the prospective capital structure and operating strategy at MultiPlan, the agency said. The rating could be raised if prospective capitalization reflects a stronger equity component and MultiPlan's strategic focus remains consistent.

Conversely, S&P said the rating could be lowered if prospective capitalization were to become too debt intensive relative to the rating or if MultiPlan's its strategic focus were to be materially altered to a more risky profile.

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