Fitch Ratings affirmed its "BB+" rating for Escondido, Calif.-based Palomar Health.
The affirmation reflects Palomar's strong market position in the northern San Diego service area as well as limited exposure to reimbursement risk due to a payer mix that is dominated by Medicare, commercial and managed-care payers.
Fitch expects the system's operating incomes to markedly improve soon due to ongoing improvements and strategic initiatives.
The rating outlook remains positive.