Summary: California Statewide Communities Development Authority Loma Linda University Medical Center; Hospital

Standard&Poor's Ratings Services lowered its long-term rating to 'BB+' from 'BBB' on the California Statewide Communities Development Authority's $574 million series 2014A, $123 million series 2014B, and $13 million series 2014C revenue bonds, issued for Loma Linda University Medical Center (LLUMC). The outlook remains negative. With this review we are reclassifying LLUMC as a multisite system, because LLUMC now meets our system definition by having three or more hospitals and operating revenues in excess of $1.5 billion. The downgrade and continuing negative outlook reflect LLUMC's extremely large campus transformation project that is now board approved for a total cost of $1.049 billion (up from an estimated $926.3 million at the time of our previous analysis). The project is

...Standard & Poor's Ratings Services lowered its long-term rating to '##+' from '###' on the California Statewide Communities Development Authority's $574 million series 2014A, $123 million series 2014B, and $13 million series 2014C revenue bonds, issued for Loma Linda University Medical Center (LLUMC). The outlook remains negative. With this review we are reclassifying LLUMC as a multisite system, because LLUMC now meets our system definition by having three or more hospitals and operating revenues in excess of $1.5 billion. The downgrade and continuing negative outlook reflect LLUMC's extremely large campus transformation project that is now board approved for a total cost of $1.049 billion (up from an estimated $926.3 million at the time of our previous analysis). The project is expected to result in a doubling of the current debt load with an anticipated financing of approximately $800 million in April 2016 to fund a portion of the project costs, three years of capitalized interest, a...

Summary