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S&P upgrades Option Care Health's issuer credit rating after BioScrip deal

S&P Global Ratings upgraded its issuer credit rating on Option Care Health Inc. to B- from CCC+.

The rating increase comes after Option Care Enterprises Inc. and BioScrip Inc. completed their merger to form an independent provider of home and alternate-site infusion services.

S&P Global Ratings said the upgrade is based on its expectation that the combined company will have mid-single-digit percentage revenue growth. The agency added that the combination is expected to benefit from greater scale, significant cost synergies, stronger competitive standing within the home infusion market, and good product, geographic and payer diversity.

The rating agency also removed the company's ratings from CreditWatch. It placed the ratings on Bioscrip on CreditWatch with positive implications after Bioscrip disclosed plans of the merger.

S&P Global Ratings said the outlook on Option Care Health is stable as it expects the company will have a modest free cash flow close to the end of 2020 after initial integration and related nonrecurring expenses subside.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.