Fitch rates Valley Health System debt CC

Fitch Ratings said it assigned a CC rating to $79.5 million of bonds issued by Valley Health System, Calif.

Although payments to bondholders are current, the system filed for Chapter 9 bankruptcy on Dec. 13, 2007, Fitch said. As part of its reorganization plan, the system will sell Moreno Valley Community Hospital on June 19, but it is not clear how quickly it will be able to resume monthly debt service payments.

The rating applies to $34.4 million 1996 series A hospital revenue bonds and $45.1 million series 1993 certificates of participation.

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