S&P Global Ratings upgraded its long-term rating on Escondido, Calif.-based Palomar Health's revenue bonds to "BBB" from "BBB-." At the same time, S&P Global ratings downgraded its long-term and underlying rating on Palomar Health's outstanding general obligation bonds to "BBB" from "A."
The rating changes are a result of S&P's revised rating criteria, which were published March 19. The "BBB" rating reflects Palomar Health's strong inpatient market share, large primary service area as well as its high debt load and weaker financial profile.
The outlook is stable, reflecting the progress the health system is seeing in restoring operational performance to historical levels.