Standard & Poor's Ratings Services affirmed its 'BBB+' underlying rating (SPUR) on California Statewide Communities Development Authority's series 2000 certificates of participation (COPs), issued for the Orthopaedic Hospital (OH) and Los Angeles Orthopaedic Hospital Foundation (LAOHF). The outlook is stable. Given the charitable nature of its business model, OH's operating income is consistently negative. However, support provided by the obligated LAOHF, and significant non-operating incomes have historically offset OH's operating losses. While the credit remains a balance sheet rating, we recognize that management is working to preserve the strength of the balance sheet by restricting its spending rate. More specifically, the 'BBB+' rating reflects our opinion of OH's: Strong liquidity, as evidenced by more than 1,551 days' cash on hand,...
Companies mentioned in this report are:
- California Statewide Communities Dev Auth
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