S&P lowers Loma Linda University Medical Center's rating to 'BB'

Standard & Poor's Ratings Services has lowered its rating to "BB" from "BB+" on Loma Linda (Calif.) University Medical Center's following bonds:

  • $573 million of series 2014A bonds
  • $123 million of series 2014B bonds
  • $13 million of series 2014C bonds

"We believe the 'BB' rating reflects LLUMC's weaker-than-expected financial profile, light pro forma [maximum annual debt service] coverage due partly to weaker-than-budgeted operating performance in 2015 and a thin balance sheet due to the large debt insurance for a significantly sized project," said S&P credit analyst Suzie Desai.

S&P also assigned a "BB" rating to LLUMC's $883 million of series 2016A fixed rate bonds.

The outlook is stable.

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