Moody's Investors Service has assigned a "Baa3" rating to Lancaster, Calif.-based Antelope Valley Healthcare District's proposed $140 million of series 2016A bonds.
The rating assignment is based on several factors, including AVHD's challenging payer mix and modest liquidity.
However, the system also has several strengths, including its status as a provider of many unique services in its market.
The rating is negative, reflecting AVHD's recent challenges, including difficultly maintaining solid operating performance and a high turnover in senior management.