S&P Global Ratings lowered its long-term rating to 'B' from 'B+' on the City of Oroville, Calif.'s series 2019 revenue bonds, issued for Oroville Hospital (Oroville). The outlook is negative. The rating action reflects our view of the hospital's challenged balance sheet, which limits financial flexibility at a time of performance challenges and which could experience more pressure as the new tower opens in spring 2024. In addition, Oroville was in violation of certain financial covenants for its bank debt and publicly issued debt in 2022 and there could be certain covenant challenges for fiscal 2023. Management is in discussion with its bondholders and the bank regarding a waiver for 2022, but that remains an outstanding issue, which raises the
