S&P Global Ratings lowered to 'BB+' from 'BBB' 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 rating and SPUR on Palomar's general obligation (GO) bonds. The outlook is negative. The rating action reflects our view of Palomar's already vulnerable financial profile further depressed by a trend of deteriorating operating performance, a substantial (and rapid) decline in reserves and days' cash on hand (DCOH) exacerbated by a delay in intergovernmental transfer (IGT) payments resulting in diminishing balance sheet cushion, and an extremely high debt burden and leverage. Although management expects to meet its covenants for coverage (1.15x) and DCOH (65 days requirement with Assured Guaranty) at year
