Oroville, CA Series 2019 Bond Rating Placed On CreditWatch Negative

ENGLEWOOD (S&P Global Ratings) Oct. 5, 2023--S&P Global Ratings placed its 'B' long-term rating on the City of Oroville, Calif.'s series 2019 revenue bonds, issued for Oroville Hospital (Oroville), on CreditWatch with negative implications. "The CreditWatch placement reflects new publicly available information posted Oct. 4, 2023, from U.S. Bank N.A. confirming that the violation of the hospital's debt service coverage covenant on the series 2018 bonds (unrated by S&P Global Ratings) triggered an event of default and that no waiver for the covenant violation has been granted," said S&P Global Ratings credit analyst Blake Fundingsland. While we understand that the 2018 bondholders do not have acceleration rights, we believe acceleration could be possible based on the 2019 bond documents. Waiver

...October 5, 2023 ENGLEWOOD (S&P Global Ratings) Oct. 5, 2023--S&P Global Ratings placed its 'B' long-term rating on the City of Oroville, Calif.'s series 2019 revenue bonds, issued for Oroville Hospital (Oroville), on CreditWatch with negative implications. "The CreditWatch placement reflects new publicly available information posted Oct. 4, 2023, from U.S. Bank N.A. confirming that the violation of the hospital's debt service coverage covenant on the series 2018 bonds (unrated by S&P Global Ratings) triggered an event of default and that no waiver for the covenant violation has been granted," said S&P Global Ratings credit analyst Blake Fundingsland. While we understand that the 2018 bondholders do not have acceleration rights, we believe acceleration could be possible based on the 2019 bond documents. Waiver conversations for the series 2019 bonds remain ongoing. At the time of our previous analysis, published Sept. 29, 2023, we were aware Oroville had a DSC violation (1.15x required under...

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