S&P puts Plenary Health on watch

S&P said it placed its A- rating on Plenary Health Care Partnerships Humber LP (ProjectCo) on CreditWatch with negative implications.

ProjectCo recently notified S&P that Humber River Hospital (HRH) issued a notice to exercise its right to require ProjectCo to end the service contract with Johnson Controls LP, stating that ProjectCo breached the rolling six-month period, February 2021-July 2021, failure points threshold for service provider termination under the project agreement, the agency said.

ProjectCo is challenging HRH’s right to terminate the contract.

“The CreditWatch placement reflects that we could lower the rating if the service provider is terminated, and ProjectCo self-performs facilities management (FM) and lifecycle services, and absorbs the continuing high deductions; or if the replacement service provider charges a premium above the current FM and lifecycle services cost,” S&P said in a press release.

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