SAN FRANCISCO (Standard&Poor's) Oct. 23, 2008--Standard&Poor's Ratings Services assigned its 'A+' rating to Palomar Pomerado Health District (PPH), Calif.'s $110 million series 2008A general obligation (GO) bonds and affirmed its 'A+' underlying rating (SPUR) on all outstanding district GO bonds. The outlook is stable. "The hospital sector is inherently more vulnerable than traditional GO credits to business risk, and PPH's continued weakened financial performance -- including negative operating margins -- has resulted in a downward trending liquidity position," said Standard&Poor's credit analyst Paul Dyson. "However, the district's financial turnaround plan, strong tax base, GO taxing ability, and strong market share do provide a certain degree of credit comfort against our financial and operational concerns."
