...S&P Global Ratings' long-term rating on California Municipal Finance Authority's outstanding revenue bonds and certificates of participation, issued for Palomar Health is '###'. S&P Global Ratings' long-term and underlying rating (SPUR) on Palomar Health's outstanding general obligation (GO) bonds is also '###'. The outlook is stable. The '###' rating reflects our view of Palomar's strong enterprise profile, highlighted by the district's solid market position in a moderately large primary service area (PSA) with favorable economic demographics (northern San Diego County). However, continued softness across volume metrics continues to be a challenge for the organization. The rating also reflects our view of Palomar's vulnerable financial profile, underlined by generally weak operating margins, very light liquidity metrics and high debt load (divided between Revenue and GO bonds). According to management, weaker performance in fiscal 2018 is attributed to declining utilization, rising labor...
