Palomar Health gets low debt rating and warning

Fitch Ratings has affirmed the BB+ rating on Palomar Health's outstanding debt and revised the rating outlook to negative from stable.

Only two years ago the healthcare operator, formerly known as Palomar Pomerado Health System, had a AA rating that was dropped to A-. Fitch says Palomar Health's financial performance has declined greatly due to problems with transition to a new facility in North County from downtown Escondido.

Fitch believes the North County market is a good one and Palomar can benefit from population growth along the I-15 corridor but says the debt burden is too high.