Community Health System, CA 2015, 2017 Bond Rating Outlook Revised To Stable From Positive On Declining Operations

NEW YORK (S&P Global Ratings) Nov. 23, 2021--S&P Global Ratings revised its outlook to stable from positive on the California Municipal Finance Authority's series 2015 and 2017 bonds and affirmed its 'A-' rating on those bonds issued on behalf of Community Hospitals of Central California (d/b/a Community Health System [CHS]). Additionally, S&P Global Ratings assigned its 'A-' rating to the authority's $302.7 million series 2021A tax-exempt fixed-rate bonds and $133.9 million series 2021B taxable bonds, issued on behalf of CHS. "The outlook revision reflects our view of CHS' declining operating trend due primarily to COVID-19 and inherent operating volatility spurred by the timing lag of provider fee funds, as well as ongoing uncertainty amid a period of heavy capital spending

...November 23, 2021 NEW YORK (S&P Global Ratings) Nov. 23, 2021--S&P Global Ratings revised its outlook to stable from positive on the California Municipal Finance Authority's series 2015 and 2017 bonds and affirmed its 'A-' rating on those bonds issued on behalf of Community Hospitals of Central California (d/b/a Community Health System [CHS]). Additionally, S&P Global Ratings assigned its 'A-' rating to the authority's $302.7 million series 2021A tax-exempt fixed-rate bonds and $133.9 million series 2021B taxable bonds, issued on behalf of CHS. "The outlook revision reflects our view of CHS' declining operating trend due primarily to COVID-19 and inherent operating volatility spurred by the timing lag of provider fee funds, as well as ongoing uncertainty amid a period of heavy capital spending and COVID-19-related staffing challenges. While management expects it will exceed budgeted targets for fiscal 2022, we view the timing lag of provider-fee funds as an ongoing challenge that CHS will...

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