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How do you know RB7 is not high? Is it an analogue pin? If so, you need to make it digital. Are you overloading the pin with the wrong series resistor or the LED incorrect? Is RB7 a debug pin?
Edit, Ian beat me to it. BTW, I tried to download the datasheet but Microchip isn't responding. I could get one from Mouser but it seemed to be a shortened version, didn't even have the pinout!! I hope this isn't how the new datasheets are going to be.
Might just be a short version for advertising purposes?, I've certainly never seen a less than 'far too much' datasheet
The 18F27K40 is 818 pages