Moody’s downgrades Sonoma Valley Health District’s GO bonds to ‘Baa1’

Moody’s Investors Service has downgraded Sonoma (Calif.) Valley Health Care District’s general obligation bonds to ‘Baa1’ from ‘A1,’ affecting approximately $23 million of rated GO debt.

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The downgrade is based on several factors, including the district’s narrow liquidity and weak balance sheet. The rating is supported by the district’s large tax base.

Moody’s has assigned a negative outlook, reflecting projected weak financial performance indicated on the district’s 2015 unaudited financial and 2016 budget.

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