S&P may downgrade West Penn Allegheny

Standard & Poor's said it placed West Penn Allegheny Health System's $758.7 million outstanding series 2007A fixed-rate health system revenue bonds issued by the Allegheny County Hospital Development Authority, Pa., on CreditWatch with negative implications.

After a September meeting with management, S&P said it expects to revise its outlook to negative from stable and may also lower its BB rating.

The action "reflects significant and unexpected management turnover, failure to meet financial projections supplied last year at the time of the system's debt restructuring, and the July 28 announcement that West Penn's financial statements will be negatively adjusted by $73 million largely due to overstated accounts receivable," S&P said.

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