Fitch Ratings affirms its 'F1+' short-term rating on approximately $122.4 million of the following bonds issued by the County of Franklin, Ohio on behalf of OhioHealth Corporation (OhioHealth) based on OhioHealth's internal liquidity.
--$61.2 million series 2011B hospital facilities refunding revenue bonds;
--$61.2 million series 2011C hospital facilities refunding revenue bonds.
The affirmation of the 'F1+' rating is based on the availability of highly liquid securities to cover potential demands on its series 2011B and 2011C bonds. The series 2011B bonds are mandatory tender bonds with a tender date of July 2, 2012. The series 2011C bonds are two year SIFMA floating rate notes with a put date of June 13, 2013. OhioHealth provides regular liquidity reports to Fitch to monitor the sufficiency of OhioHealth's cash and investment position relative to its potential mandatory put exposure. At March 31, 2012, OhioHealth had sufficient liquid resources based on Fitch's criteria that would cover the potential mandatory put on any given date well in excess of Fitch's 1.25 times (x) threshold for the 'F1+' short-term rating. OhioHealth has liquidation procedures in place detailing the process by which internal funds would be liquidated to meet the tender obligations.
OhioHealth's long-term rating is 'AA'. For more information, see Fitch's press release dated June 1, 2011.
Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Revenue-Supported Rating Criteria' (June 20, 2011);
--'Nonprofit Hospitals and Health Systems Rating Criteria' (Aug. 12, 2011);
--'Criteria for Assigning Short-Term Ratings Based on Internal Liquidity' (June 20, 2011);
--'Fitch Assigns 'AA' to OhioHealth (OH) Series 2011A-D; 'F1+' to Series 2011B&C; Outlook Stable' (June 1, 2011).
Applicable Criteria and Related Research:
Revenue-Supported Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=637130
Nonprofit Hospitals and Health Systems Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648836
Criteria for Assigning Short-Term Ratings Based on Internal Liquidity
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=637129
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