OREANDA-NEWS. S&P Global Ratings raised its rating on Palomar Health District, formerly Palomar Pomerado Health, Calif.'s outstanding debt to 'A' from 'BBB+' based on our view of the district's improved enterprise and financial profiles. Additionally, S&P Global Ratings assigned its 'A' rating to the district's 2016 refunding bonds. The outlook is stable.

"While Palomar Health's financial profile remains vulnerable, with a high debt load, modest unrestricted reserves, and pressured operations, its overall financial profile has improved incrementally in every way," said S&P Global Ratings credit analyst Jen Hansen.

The ratings reflect our view of Palomar Health's:

Continued very robust and diverse tax base, Location within an affluent region of the robust and diverse San Diego County (AAA/Stable issuer credit rating) economy, Improved unrestricted reserves, Improving patient volume metrics combined with strong market share, andMinimal capital plans given its completion of its significant master facility plan in 2013.At June 30, 2016, Palomar Health had $1.14 billion of long-term debt outstanding, including $602.5 million of GO bonds and $538.9 million of other debt consisting primarily of several series of certificates of participation, which are secured by revenues as defined in the governing bond documents.