Moody's Investors Service has affirmed the "Ba1" ratings assigned to Escondido, Calif.-based Palomar Health's revenue bonds, affecting approximately $560 million of debt.
Here are three things to know about the rating and the system's outlook.
1. The rating affirmation was based on a number of factors, including Palomar Health's poor liquidity and the failure of the organization to improve cash balances beyond current levels.
2. The rating is counterbalanced by certain fundamental strengths, such as the system's leading market position in northern San Diego County, its status as the
largest district hospital in California, the certain level of stability it enjoys due to the contract with Oakland, Calif.-based Kaiser Permanente and the absence of immediate competition, according to Moody's.
3. Palomar Health's outlook is negative.
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