Moody’s Investors Service affirmed its Ba2 rating for outstanding revenue debt issued for Citrus Valley Health Partners, including $52.6 million of Series 1998 fixed-rate certificates of participation and $25 million of Series 1998 auction-rate COPs.
Both series are insured by MBIA Insurance Corp. and were issued through the California Statewide Communities Development Authority.
The outstanding debt has been secured by a pledge of gross revenues of the obligated group which includes Citrus Valley Health Partners, the parent corporation, Citrus Valley Medical Center and Foothill Presbyterian Hospital. The obligated group represents 97% of system revenues and 94% of assets in the 2009 financial year.
The group managed a turnaround in operating performance in financial year 2009 from a sizable operating loss in 2008 on the back of favorable volume growth and performance improvement initiatives. Moody’s, however, maintained a negative outlook on the credit.