Loma Linda University Medical Center, CA Fixed-Rate Revenue Bond Rating Lowered To 'BB-' On Unanticipated Debt

CHICAGO (S&P Global Ratings) July 20, 2018--S&P Global Ratings lowered its long-term rating to 'BB-' from 'BB' on the California Statewide Communities Development Authority's series 2016A, 2014A, and 2014B fixed-rate revenue bonds. In addition, S&P Global Ratings assigned its 'BB-' long-term rating to the authority's $366.25 million series 2018 fixed-rate bonds. All bonds were issued for Loma Linda University Medical Center (LLUMC) obligated group. The outlook is stable. "The rating action reflects our view of LLUMC's unanticipated debt with rising pro forma maximum annual debt service and an overall tightening of an already weak balance sheet," said S&P Global Ratings credit analyst Suzie Desai. Specifically, approximately $200 million of the series 2018 bond proceeds will go toward LLUMC's large campus

...CHICAGO (S&P Global Ratings) July 20, 2018--S&P Global Ratings lowered its long-term rating to '##-' from '##' on the California Statewide Communities Development Authority's series 2016A, 2014A, and 2014B fixed-rate revenue bonds. In addition, S&P Global Ratings assigned its '##-' long-term rating to the authority's $366.25 million series 2018 fixed-rate bonds. All bonds were issued for Loma Linda University Medical Center (LLUMC) obligated group. The outlook is stable. "The rating action reflects our view of LLUMC's unanticipated debt with rising pro forma maximum annual debt service and an overall tightening of an already weak balance sheet," said S&P Global Ratings credit analyst Suzie Desai. Specifically, approximately $200 million of the series 2018 bond proceeds will go toward LLUMC's large campus transformation project with $150 million going to other capital projects to help maintain LLUMC's unrestricted reserves. The remaining proceeds will go toward a debt service reserve fund...

Ratings Action