Loma Linda University Medical Center, CA Revenue Bond Rating Lowered To 'BB+' On Large Planned Debt Issuance

CENTENNIAL (Standard&Poor's) June 30, 2015--Standard&Poor's Ratings Services lowered its long-term rating to 'BB+' from 'BBB' on the California Statewide Communities Development Authority's $574 million series 2014A, $123 million series 2014B, and $13 million series 2014C revenue bonds, issued for Loma Linda University Medical Center (LLUMC). The outlook remains negative. With this review we are reclassifying LLUMC as a multisite system, because LLUMC now meets our system definition by having three or more hospitals and operating revenues in excess of $1.5 billion. "The downgrade and continuing negative outlook reflect LLUMC's extremely large campus transformation project that is now board approved for a total cost of $1.049 billion, up from an estimated $926.3 million at the time of

...CENTENNIAL (Standard & Poor's) June 30, 2015--Standard & Poor's Ratings Services lowered its long-term rating to '##+' from '###' on the California Statewide Communities Development Authority's $574 million series 2014A, $123 million series 2014B, and $13 million series 2014C revenue bonds, issued for Loma Linda University Medical Center (LLUMC). The outlook remains negative. With this review we are reclassifying LLUMC as a multisite system, because LLUMC now meets our system definition by having three or more hospitals and operating revenues in excess of $1.5 billion. "The downgrade and continuing negative outlook reflect LLUMC's extremely large campus transformation project that is now board approved for a total cost of $1.049 billion, up from an estimated $926.3 million at the time of our previous analysis," said Standard & Poor's credit analyst Kenneth Gacka. "In our view, the magnitude of the now-final approved project and the planned debt issuance in less than a year, on top of LLUMC's...

Ratings Action