Loma Linda University Medical Center, CA Revenue Debt Rating Lowered To 'BB' On Weaker Financial Profile

CHICAGO (Standard&Poor's) April 7, 2016--Standard&Poor's Ratings Services lowered its long-term rating to 'BB' from 'BB+' on the California Statewide Communities Development Authority's $573 million series 2014A, $123 million series 2014B, and $13 million series 2014C revenue bonds, issued for Loma Linda University Medical Center (LLUMC). We also assigned our 'BB' long-term rating to the authority's $883 million of series 2016A fixed-rate bonds, issued for LLUMC. The outlook is stable. "We believe the 'BB' rating reflects LLUMC's weaker-than-expected financial profile, light pro forma MADS coverage due partly to weaker-than-budgeted operating performance in 2015, and a thin balance sheet due to the large debt issuance for a significantly sized project," said Standard&Poor's credit analyst Suzie Desai.

...CHICAGO (Standard & Poor's) April 7, 2016--Standard & Poor's Ratings Services lowered its long-term rating to '##' from '##+' on the California Statewide Communities Development Authority's $573 million series 2014A, $123 million series 2014B, and $13 million series 2014C revenue bonds, issued for Loma Linda University Medical Center (LLUMC). We also assigned our '##' long-term rating to the authority's $883 million of series 2016A fixed-rate bonds, issued for LLUMC. The outlook is stable. "We believe the '##' rating reflects LLUMC's weaker-than-expected financial profile, light pro forma MADS coverage due partly to weaker-than-budgeted operating performance in 2015, and a thin balance sheet due to the large debt issuance for a significantly sized project," said Standard & Poor's credit analyst Suzie Desai. Standard & Poor's downgraded LLUMC's debt last year to non-investment grade due to the pending large capital project and expected debt issuance that roughly doubles LLUMC's outstanding...

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