Fitch Ratings assigned its "BB+" rating to Escondido, Calif.-based Palomar Health's proposed $153.3 million series 2017 refunding revenue bonds.
Concurrently, Fitch affirmed its "BB+" issuer default rating on Palomar Health, as well as its "BB+" rating on Palomar Health's outstanding series 2007A, 2009A and 2010A general obligation bonds.
The assignment and affirmation are a result of several factors, including Palomar Health's improving profitability, dominant market share and its strong economic resource base supporting the district's general obligation bonds. In addition, Fitch acknowledged that the closure of its 295-bed Palomar Medical Center Downtown Escondido will generate significant savings when it officially closes.
The rating outlook is positive.