...S&P Global Ratings raised its long-term rating and underlying rating (SPUR) on Palomar Health District, formerly Palomar Pomerado Health), Calif.'s outstanding debt to 'A' from '###+' based on our view of the district's improved enterprise and financial profiles. Additionally, S&P Global Ratings assigned its 'A' rating to the district's 2016 refunding bonds. The outlook is stable. While Palomar Health's financial profile remains vulnerable, with a high debt load, modest unrestricted reserves, and pressured operations, its overall financial profile has improved incrementally in every way, including reduced subsidies for its physician-related subsidiary (Arch), as well as improved operating income, excess income, cash flow, and unrestricted reserves. Overall financial metrics remains weak as the new hospital--Palomar Medical Center (PMC), which opened in fiscal 2013--was expensive, and as a result, the organization carries a very large debt load. The debt is divided between revenue bonds...
