Moody's Investors Service has put the Ba2 rating of Somerset Medical Center on review for a downgrade, affecting $80 million in outstanding debt.

"Language was recently added to SMC letter of credit reimbursement agreement which states that failure of SMC to sign a letter of intent (or other document) on or prior to August 31, 2013 for a merger with another health system results in an event of default," Moody's analyst Sarah Vennekotter and vice president Beth Wexler wrote.

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