Moody’s Investors Service has placed the Caa1 bond rating of West Penn Allegheny Health System, one of the top speculative-grade issuers in the municipal market, under review for possible downgrade after it terminated its $475 million merger agreement with fellow Pittsburgh health care provider Highmark Inc.

Moody’s announced the action, which affects roughly $737 million of Series 2007 fixed-rate bonds issued through the Allegheny County Hospital Development Authority, late Friday, right after West Penn Allegheny officials canceled the merger.

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