Palomar Health, CA 'BB+' Debt Rating Placed On CreditWatch Negative Due To Deteriorating Credit Metrics - S&P Global Ratings’ Credit Research

Palomar Health, CA 'BB+' Debt Rating Placed On CreditWatch Negative Due To Deteriorating Credit Metrics

Palomar Health, CA 'BB+' Debt Rating Placed On CreditWatch Negative Due To Deteriorating Credit Metrics - S&P Global Ratings’ Credit Research
Palomar Health, CA 'BB+' Debt Rating Placed On CreditWatch Negative Due To Deteriorating Credit Metrics
Published Nov 27, 2024
2 pages (1131 words) — Published Nov 27, 2024
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Abstract:

CHICAGO (S&P Global Ratings) Nov. 27, 2024--S&P Global Ratings placed its 'BB+' long-term rating on the California Municipal Finance Authority's revenue bonds and certificates outstanding issued for Palomar Health (Palomar) and its 'BB+' long-term and underlying (SPUR) ratings on Palomar's general obligation (GO) bonds on CreditWatch with negative implications. "The CreditWatch placement reflects our view that there is a one-in-two chance the rating could be lowered within the next 90 days, potentially by multiple notches," said S&P Global Ratings credit analyst Suzie Desai. Palomar's operating losses accelerated through its fiscal 2024 year-end (June 30) and unrestricted reserves have further weakened since our most recent review in April 2024, against expectations of improvement and thus resulting in the violation of Palomar's

  
Brief Excerpt:

...November 27, 2024 CHICAGO (S&P Global Ratings) Nov. 27, 2024--S&P Global Ratings placed its '##+' long-term rating on the California Municipal Finance Authority's revenue bonds and certificates outstanding issued for Palomar Health (Palomar) and its '##+' long-term and underlying (SPUR) ratings on Palomar's general obligation (GO) bonds on CreditWatch with negative implications. "The CreditWatch placement reflects our view that there is a one-in-two chance the rating could be lowered within the next 90 days, potentially by multiple notches," said S&P Global Ratings credit analyst Suzie Desai. Palomar's operating losses accelerated through its fiscal 2024 year-end (June 30) and unrestricted reserves have further weakened since our most recent review in April 2024, against expectations of improvement and thus resulting in the violation of Palomar's debt service coverage and days' cash on hand requirements. Revenue of the obligated group secures the revenue bonds. The GO bonds are a GO of...

  
Report Type:

Ratings Action

Issuer
Palomar Health
Sector
Global Issuers, Public Finance
Country
United States
Region
United States
Format:
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Palomar Health, CA 'BB+' Debt Rating Placed On CreditWatch Negative Due To Deteriorating Credit Metrics" Nov 27, 2024. Alacra Store. May 23, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Palomar-Health-CA-BB-Debt-Rating-Placed-On-CreditWatch-Negative-Due-To-Deteriorating-Credit-Metrics-3292703>
  
APA:
S&P Global Ratings’ Credit Research. (). Palomar Health, CA 'BB+' Debt Rating Placed On CreditWatch Negative Due To Deteriorating Credit Metrics Nov 27, 2024. New York, NY: Alacra Store. Retrieved May 23, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Palomar-Health-CA-BB-Debt-Rating-Placed-On-CreditWatch-Negative-Due-To-Deteriorating-Credit-Metrics-3292703>
  
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