S&P Drops Valley Health to C

Standard & Poor’s Monday lowered its rating for Valley Health System hospital revenue bonds to C from B-minus following the public hospital district’s Chapter 9 bankruptcy filing last week. The outlook is negative. The Hemet-based district filed for bankruptcy after voters rejected plans to sell its three hospitals to a private operator. Standard & Poor’s noted that the system has suffered through several years of operating losses that accelerated in the last two years.Fitch Ratings downgraded Valley Health to CCC in late September and placed it on negative watch.