Moody's Investors Service has downgraded Sonoma (Calif.) Valley Health Care District's general obligation bonds to 'Baa1' from 'A1,' affecting approximately $23 million of rated GO debt.
The downgrade is based on several factors, including the district's narrow liquidity and weak balance sheet. The rating is supported by the district's large tax base.
Moody's has assigned a negative outlook, reflecting projected weak financial performance indicated on the district's 2015 unaudited financial and 2016 budget.