...S&P Global Ratings assigned its '##+' long-term rating to the City of Oroville, Calif.'s $239.6 million series 2019 revenue bonds, issued for Oroville Hospital (Oroville). The outlook is stable. The rating and outlook reflect our view of Oroville's enterprise profile, characterized by its solid market share in its primary service area (PSA), which is expected to increase modestly over the near term. Oroville's competitive position in its PSA is offset somewhat by a high reliance on both governmental payers as well as special funding. The rating and outlook further reflect our view of Oroville's financial profile, which we view as vulnerable following this debt issuance as it pressures the hospital's balance sheet and increases leverage notably. Although Oroville's debt and liquidity metrics will be strained post-issuance, the hospital's ability to consistently generate healthy operating margins is viewed positively. We expect the hospital's operations to remain positive over the next several...
