...+ S&P Global Ratings placed 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 and underlying (SPUR) ratings on Palomar's general obligation (GO) bonds on CreditWatch with negative implications. + The CreditWatch placement reflects our view that there is a one-in-two chance the rating could be lowered within the next 90 days, potentially by multiple notches. Palomar's operating losses accelerated through its fiscal 2024 year-end (June 30) and unrestricted reserves have further weakened since our most recent review in April 2024, against expectations of improvement and thus resulting in the violation of Palomar's debt service coverage (DSC) and days' cash on hand (DCOH) requirements. While we expect Palomar will sign a forbearance agreement to limit potential debt acceleration, we believe the financial profile is likely to remain weak during the outlook period....
