Healthcare

Both ratings agencies cited the health system's improved liquidity in recent years.

Falling occupancy figures, staffing shortages, and rising labor costs have elevated the sector's risk, with Greenwich Investment Management's bankruptcy yet another example of how the sector requires thorough credit analysis.

The number of rural hospitals in the red jumped by 7% in 2023. A Senate Finance Committee discussed aid to help them stay afloat.

Healthcare issuance is up 122.2% year-over-year through April, rising to $9.062 billion through the first four months of 2024 from $4.078 billion over the same time period in 2023, LSEG data shows.

Issuance has increased, but financial performance and ratings are likely to stay volatile.

Three Pillars Senior Living has already pre-sold 70% of the planned units that will support the bonds.

The state's largest healthcare district by land mass is at risk of breaching financial covenants, according to Moody's Investors Service.

Palomar Health had its outlook revised to negative by Moody's, affecting $672.5 million in outstanding debt.

A California treasurer's conduit approved a $135 million bond-funded grant for Loma Linda University Children's Hospital.

The downgrade of Kaweah Delta Health Care District's revenue bonds to Ba1 affected $218 million of debt.