Moody’s Investors Service has upgraded Sierra Kings Health Care District’s general obligation bonds to Baa3 from Ba2 after a federal judge ruled that GO debt service cannot be interrupted by the district’s Chapter 9 bankruptcy filing.

The ratings agency said the upgrade to investment grade reflects the ruling by the United States Bankruptcy Court Eastern District of California that the voter-approved property tax pledge securing the GO bonds qualifies as both a “special revenue pledge” and a “statutory lien.”

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