S&P: Universal Health on watch

Standard & Poor's said it placed its BBB- corporate credit rating, and all of its issue-level ratings, on Universal Health Services Inc. on Creditwatch with negative implications, reflecting weakened financial risk profile that will most likely occur if Universal acquires Psychiatric Solutions.

"The investment-grade ratings on Universal Health Services Inc. currently reflects the company's moderately diverse hospital portfolio, reasonably strong positions in growing communities, and historically conservative financial policy that helps it maintain an intermediate financial risk profile," said credit analyst David Peknay.

Should Psychiatric Solutions be acquired, the company's portfolio would be more heavily concentrated in behavioral facilities, the agency added.

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