NEW YORK--(BUSINESS WIRE)--On the effective date of March 10, 2011, Fitch Ratings will upgrade the long-term rating to 'AA-' from 'A+', confirm the short-term 'F1+' rating and remove the Rating Watch Negative on the ratings assigned to the Highlands County Health Facilities Authority hospital revenue bonds, (Adventist Health System /Sunbelt Obligated Group) $45,675,000 series 2004A and $49,425,000 series 2005H. These rating actions are in connection with: (i) the substitution of the irrevocable direct-pay letters of credit (LOCs) previously provided by Citibank, N.A. (rated 'A+/F1+', long- and short-term ratings on Rating Watch Negative by Fitch) with substitute LOCs issued by U.S. Bank National Association (rated 'AA-/F1+', Outlook Stable by Fitch); and (ii) the mandatory tender of the bonds, which will occur on the substitution date, March 10, 2011.
Pursuant to the substitute LOCs, the bank is obligated to make payments of principal of and interest on the bonds upon maturity, acceleration and redemption, as well as purchase price for tendered bonds. The rating on each series of bonds will expire upon the earliest of: (a) Dec. 13, 2015, the initial stated expiration date of the substitute LOCs, unless such date is extended; (b) conversion to an interest rate mode other than daily, weekly or monthly; (c) any prior termination of the related substitute LOC; and (d) defeasance of the bonds. The U.S. Bank substitute LOCs provide full and sufficient coverage of principal plus an amount equal to 54 days of interest at a maximum rate of 12% based on a year of 365 or 366 days and purchase price for tendered bonds, while in the daily, weekly and monthly rate modes. The Remarketing Agents for both series of bonds are U.S. Bancorp, Inc. and U.S. Bank Municipal Securities Group (acting jointly).
Additional information is available at www.fitchratings.com.
Applicable Criteria and Related Research:
--'U.S. Municipal Structured Finance Rating Criteria', Aug. 16, 2010;
--'Rating Guidelines for Letter of Credit-Supported Bonds', April 29, 2009.
Applicable Criteria and Related Research:
Rating Guidelines for Letter of Credit-Supported Bonds
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=435132
U.S. Municipal Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=548588
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