NEW YORK--(BUSINESS WIRE)--Fitch Ratings has withdrawn the 'A-' rating assigned to the expected issuance of:
--$48.9 million Burleigh County North Dakota health care revenue refunding bonds, series 2013A (St. Alexius Medical Center Project).
Further, Fitch places the outstanding 'A-' ratings on the following revenue bonds issued on behalf of St. Alexius Medical Center (St. Alexius) on Rating Watch Negative:
--$40.6 million Burleigh County North Dakota health care revenue bonds, series 2012A;
--$13.5 million City of Bismarck health care revenue bonds, series 1998A.
SECURITY
The bonds are secured by the Pledged Revenues of St. Alexius.
KEY RATING DRIVERS
CHANGE IN FINANCING PLAN: The decision to withdraw the
'A-' rating on the proposed series 2013A bond issue and to place the outstanding bonds on Rating Watch Negative is driven by a material change in the proposed plan of finance that was presented to Fitch in May.
RATING SENSITIVITIES
REVISED PLAN OF FINANCE: Management is currently reviewing its capital plans and should present Fitch with a revised plan of finance within the next two weeks. At that time, Fitch anticipates removing the bonds from Rating Watch and taking appropriate rating action.
The Rating Watch Negative reflects the potential for the rating to stay the same or go down. In light of St. Alexius' historically light liquidity metrics, the size and scope of the revised plan of finance (including the use of funds) may have a neutral or negative impact on their credit profile.
St. Alexius Medical Center includes the 306-licensed bed (281 staffed) St. Alexius Medical Center in Bismarck, North Dakota; 22-bed Garrison Memorial Hospital (Critical Access) in Garrison, ND (approximately 75 miles north of Bismarck) and 25-bed Community Memorial Hospital (Critical Access) in Turtle Lake, ND (approximately 61 miles north of Bismarck). On a consolidated basis, St Alexius had total revenues of $285.3 million in fiscal 2012 (year ending June 30).
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Revenue-Supported Rating Criteria', dated June 3, 2013;
--'Nonprofit Hospitals and Health Systems Rating Criteria', dated May 20, 2013.
For information on Build America Bonds, visit Fitch's website at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
Revenue-Supported Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=709499
Nonprofit Hospitals and Health Systems Rating Criteria — Effective Aug.
12, 2011 to July 23, 2012
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648836
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=794267
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