Moody's Investors Service has downgraded the ratings on Lancaster, Calif.-based Antelope Valley Healthcare District's revenue bonds to "Ba3", affecting approximately $97 million of rated debt.
The rating downgrade is based on several factors, including AVHD's unstable governance, which recently led to the unexpected termination of the CEO.
The rating outlook remains negative, reflecting AVHD's debt structure challenges and Moody's belief that weak governance and turnover in senior leadership delays progress on initiatives.