Palomar Pomerado Health Raised to A-Plus by S&P

Standard & Poor’s raised its rating three notches to A-plus from BBB-plus on Palomar Pomerado Health District’s Series 2005A GO bonds, issued by the North San Diego County Health Facilities Financing Authority, and assigned its A-plus rating to the district’s $250 million of Series 2007A bonds.

The raised rating reflects Standard & Poor’s increased comfort with the district’s management of its large capital plan. The outlook is stable.

“We view management’s commitment to scale back its recently increased capital plan as needed and the steps it’s taking to control construction risk as favorable,” said Standard & Poor’s credit analyst Paul Dyson. “PPH’s long-term contract with Kaiser [Permanente], its strong market share, and continued tax base growth were also significant factors in raising our rating on its GO debt.”

Credit concerns include significant future bonding that is planned to support the district’s $983 million capital plan, and reduced though stable liquidity levels.

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