Antelope Valley suffers outlook downgrade after ‘weak financial performance’

Lancaster, Calif.-based Antelope Valley Healthcare saw its outlook revised to negative from stable as the system continues to endure a “weak financial performance,” S&P Global said in a Feb. 28 filing.

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The system, which operates the Antelope Valley Medical Center, suffered financially both in fiscal 2022 and through the six-month interim period, S&P said.

While its default rating and that on specific bonds was affirmed at “BBB,” such ratings could be downgraded if the weak financial performance is sustained and if the system’s balance sheet metrics fail to improve following the completion of its current capital plans, the rating agency said.

Antelope Valley is building a new $400 million hospital backed by a $50 million investment vehicle.

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