On the effective date of Oct. 15, 2009, Fitch Ratings will upgrade to 'AA-F1+' from 'A-/F1' the ratings currently assigned to the following $224,405,000 Highlands County Health Facilities Authority Hospital Revenue Bonds (Adventist Health System/Sunbelt Obligated Group):
--$61,875,000 Series 2005E;
--$82,130,000 Series 2006B;
--$80,400,000 Series 2007B.
In addition, Fitch will upgrade the long-term rating to 'A+' and confirm the short-term 'F1' rating on the $49,425,000 series 2005G bonds.
These rating actions are in connection with: (i) the substitution of the irrevocable, direct-pay letters of credit (LOCs), currently provided by SunTrust Bank, with the substitute LOCs described below; and (2) a mandatory tender of each series of bonds, scheduled to occur on Oct. 15, 2009. The rating on each series of bonds will expire on the earliest of: Dec. 31, 2011, the stated expiration date of each substitute LOC, unless such date is extended; any prior termination of a substitute LOC; and defeasance of the bonds.
On Oct. 15, 2009, the effective date of the substitute LOCs, the rating on all of the affected series will be as follows: 'A+/F1' on the series 2005G bonds, based on the LOC issued by Branch Banking and Trust Company (rated 'A+/F1' by Fitch); 'AA-/F1+' on the series 2005E bonds, based on the LOC issued by Calyon, acting through its New York Branch (rated 'AA-/F1+'); 'AA-/F1+' on the series 2006B bonds, based on the LOC issued by U.S. Bank, National Association (rated 'AA-/F1+'); and 'AA-/F1+' on the 2007B bonds, based on the LOC issued by Harris, N.A. (rated 'AA-/F1+').
Pursuant to the LOCs, the banks are obligated to make payments of (1) principal of and interest on the bonds when due and (2) purchase price for tendered bonds. While bonds bear interest in the daily, weekly and monthly rate modes, the LOCs provide sufficient coverage of principal plus an amount equal to 54 days of interest at a maximum rate of 12%, based on a 365-day year. The remarketing agent for the 2005E and 2005G bonds is BB&T Capital Markets. The remarketing agents for the 2006B bonds are Ziegler Capital Markets and SunTrust Robinson Humphrey. The remarketing agent for the 2007B bonds is BMO Capital Markets GKST Inc.
Additional information is available at 'www.fitchratings.com'.
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.
Contacts:
Fitch Ratings
Trudy Zibit, 212-908-0689, New York
(for info on
the LOC-based ratings)
Jim Mitchell, 813-222-1395, Tampa
(for
info on Adventist Health System/Sunbelt Obligated Group)
or
Media
Relations:
Cindy Stoller, 212-908-0526, New York
Email: cindy.stoller@fitchratings.com
