Amended - Fitch Rates Bon Secours Health's (Maryland) Bank Bonds 'A'; Outlook Stable.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- (This is an amendment to the release that went out earlier today. It adds the issuers also being affirmed.) Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has assigned a long-term underlying rating of 'A' to bank bonds corresponding to variable-rate demand obligations variable-rate demand obligation A floating-rate debt obligation that has a nominal long-term maturity as well as an option allowing the investor to put (sell) the obligation back to the trustee, generally at par plus accrued interest. issued on behalf of Bon Secours Health System, Inc. (BSHSI BSHSI Bon Secours Health System Inc (Suffern, NY) ) as follows: --Hanover County Industrial Development Authority (VA) (Bon Secours Health System, Inc.) variable-rate revenue bonds series 2002B, --Henrico County Economic Development Authority (VA) (Bon Secours Health System, Inc.) variable-rate revenue bonds series 2002B, --Norfolk Economic Development Authority (VA) (Bon Secours Health System, Inc.) variable-rate refunding bonds refunding bond A bond that is issued for the purpose of retiring an outstanding bond. Issuers refund bond issues to reduce financing costs, eliminate covenants, and alter maturities. See also crossover refunding bonds, prerefunding. series 2005A, --South Carolina Jobs-Economic Development Authority (SC) (Bon Secours Health System, Inc.) variable-rate economic development revenue bonds ser 2002B. Fitch also affirms its underlying 'A' rating on BSHSI's outstanding debt. The Rating Outlook is Stable. The affirmation applies to outstanding BSHSI obligations issued by the entities listed above, as well as: --Chesterfield County Industrial Development Authority (VA) --Russell (KY) --Michigan State Hospital Finance Authority (MI) --Venice (FL) --Bon Secours Health Care System (MD) --Maryland Industrial Development Financing Authority (MD) --Peninsula Ports Authority (VA) --New York State Dormitory Authority (NY) Although 50% of BSHSI's $1.1 billion debt consists of VRDOs, and $350 million is currently held as bank bonds, the health system's interest rate and term-out risk is relatively low. The cure period for all reimbursement agreements is 366 days, and bank rates are capped at the higher of the bank's prime rate plus 1% or the Federal funds rate Federal Funds Rate The interest rate at which a depository institution lends immediately available funds (balances at the Federal Reserve) to another depository institution overnight. plus 2%. BSHSI's long term credit rating and its strengthening credit profile strongly imply favorable access to long-term capital when debt markets stabilize. BSHSI is planning to refinance all of its outstanding insured variable rate demand debt. For more information on BSHSI, please see Fitch research dated Sept. 17, 2008 at www.fitchratings.com. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, 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 Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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