New Jersey's largest health care entity, Saint Barnabas Health Care System, is in technical default on $768 million of debt issued through the New Jersey Health Care Facilities Financing Authority due to shrinking liquidity.

While Saint Barnabas continues to meet debt service payment obligations, the health care provider is in a non-payment-related default. Saint Barnabas must have at least 60 days cash on hand and maintain debt service coverage of one times to comply with bond covenants, according to Moody's Investors Service. Saint Barnabas expects to fall short of those liquidity requirements.

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