Fitch downgrades Loma Linda University Health System’s rating to ‘BB’

Fitch Ratings downgraded Loma Linda (Calif.) University Health System’s issuer default and outstanding series 2014A, 2014B and 2016A revenue bond ratings to “BB” from “BB+.”

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Concurrently, Fitch assigned its “BB” rating to the health system’s series 2018A bonds.

The downgrade and assignment are a result of Loma Linda’s new issuance, which added more debt to an already leveraged balance sheet. Fitch favorably viewed the health system’s solid operating performance and reputation as an academic medical center.

The outlook is stable.

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