Fitch Ratings has affirmed the 'BB+' rating on Escondido, Calif.-based Palomar Health's outstanding debt and revised the health system's outlook to stable from negative.
The outlook revision was supported by a number of factors, including Palomar Health's improved operating cash flow in fiscal year 2014 and liquidity growth. Palomar Health's improved financial performance is attributed to various things, such as increased volume, cost reductions, and the sale of non-core assets, according to Fitch.
Fitch said it anticipates the health system will keep up its solid operating cash flow because of additional operational initiatives that are in the works.
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