Correct: Fitch Rates New Catholic Health Initiatives Issues 'AA'; Affirms Outstanding at 'AA/F1+'.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 a correction to a release issued on October 12, 2006. It revises information in the first paragraph, and revises the list of issues at the bottom to include one that was inadvertently omitted. Fitch assigns a rating of 'AA' to the $115,000,000 Baltimore County, MD Revenue Bonds, Series 2006A and the $285,000,000 Colorado Health Facilities Authority, Revenue Bonds, Series 2006A issued on behalf of Catholic Health Initiatives (CHI). Fitch also affirms its 'AA' rating to the approximately $1.6 billion outstanding bonds issued on behalf of Catholic Health Initiatives, listed below, and its 'F1+' short-term rating based on CHI's internal liquidity to the approximately $163.4 million outstanding bonds, also listed below. The rating actions reflects the proposed two additional bond series expected to sell last quarter 2006 and an additional series expected to sell first quarter 2007. Fitch expects to assign ratings for these series nearer to their issuance. For certain series, the 'AA' rating represents an underlying rating. The Rating Outlook is Stable. The bonds are expected to sell the week of October 23 via negotiation by UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System Securities LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control and J.P. Morgan Securities, Inc. The 'AA' rating is supported by CHI's continued solid profitability, healthy liquidity, strong revenue and profit diversity, and superior management practices. The system produced $231.4 million in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. in fiscal-year FY2006, equating to a solid 3.2% operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: . Excluding approximately $11.0 million in impairment, restructuring, and other losses, the FY2006 operating result was on par with FY2005's operating performance. The system's track record of sustained profitability is attributed to strong corporate oversight, effective capital and financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against , improvement in operations at certain underperforming markets, and divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of noncore and underperforming assets underperforming asset An asset that earns a lower rate of return than it would be capable of earning if it were properly used. A firm with underperforming assets is a prime target for takeover. Compare nonperforming asset. . Investment income was a healthy $410.7 million in 2006, which helped CHI maintain a strong bottom line, excellent debt service coverage and good liquidity. Excess margin was very strong at 9.10%, resulting in 5.2 times maximum annual debt service coverage. Liquidity remains good despite an increase in capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. . At June 30, 2006, days cash on hand was 210.0 days and cash to debt was 170.4%. CHI's liquidity and low debt burden provide CHI with ample financial flexibility. Moreover, no single facility provides more than 11% of system net income, which Fitch views positively. Concerns remain CHI's sizeable capital plan and rising industry expense pressures. CHI's capital plan includes $4.1 billion of spending over the next five years to be funded with additional debt, and cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses . Fitch believes the capital investment is necessary for CHI to maintain a competitive position in its markets. CHI projects to spend $878 million on capital in FY2007. The 'F1+' rating reflects CHI's good liquidity position and sound internal procedures that ensures timely access and transfer of funds in the event of a failed remarketing. Unrestricted cash at June 30, 2006 was approximately $3.5 billion. The Stable Rating Outlook is based on Fitch's belief that CHI will maintain its solid profit margins and financial flexibility. However, rising expense pressures associated with bad debt, labor, supplies, and insurance could constrain profitability and growth of unrestricted liquidity The FY2007 budget assumes a 285.1 million operating income (3.1% operating margin), which Fitch believes is achievable. CHI is the second-largest not-for-profit, integrated health care integrated health care, n healthcare services combining the best of conventional and complementary health care. delivery system in the U.S., with 71 hospitals and approximately 50 long-term care facilities long-term care facility n. See skilled nursing facility. in 19 states. The system produced $7.1 billion in total revenues in fiscal year 2006. CHI covenants to provide quarterly and annual disclosure to bondholders. Disclosure has been excellent, which include detailed statements with management discussion and analysis and are available at CHI's web site www.catholichealthinit.org. Outstanding debt: --$30.9 million City of Breckenridge, Minnesota Breckenridge is a city in Wilkin County, Minnesota, United States. The population was 3,559 at the 2000 census. It is the county seat of Wilkin County6. Breckenridge's twin city is Wahpeton, North Dakota. revenue bonds (Catholic Health Initiatives), series 2004A; --$71.4 million Montgomery County Montgomery County may refer to:
--$59.0 million Hospital Facility Authority of Umatilla County, Oregon Umatilla County (IPA: [ˈu mə ˌtɪ lə]) is located in the U.S. state of Oregon. The county is named for the Umatilla River. In 2000, its population was 70,548. The county seat is Pendleton. revenue bonds (Catholic Health Initiatives), series 2004A; --$56.8 million Kentucky Economic Development Finance Authority auction-rate securities (Catholic Health Initiatives), series 2004D. --$32,410,000 Colorado Health Facilities Authority revenue bonds (Catholic Health Initiatives), series 2002A; --$7,910,000 Hospital Facility Authority of Umatilla County, Oregon revenue bonds, (Catholic Health Initiatives) series 2002A; --$53,700,000 Colorado Health Facilities Authority variable-rate demand bonds (Catholic Health Initiatives), series 2002B; --$64,900,000 Washington Health Care Facilities Authority variable-rate demand bonds (Catholic Health Initiatives) (Catholic Health Initiatives), series 2002B; --$192,315,000 Colorado Health Facilities Authority revenue bonds (Catholic Health Initiatives), series 2001; --$28,985,000 Kentucky Economic Development Finance Authority revenue bonds (Catholic Health Initiatives), series 2001; --$59,225,000 Montgomery County, Ohio revenue bonds (Catholic Health Initiatives), series 2001; --$13,450,000 Iowa Finance Authority revenue bonds (Catholic Health Initiatives), series 2000A; --$30,475,000 Kentucky Economic Development Finance Authority revenue bonds (Catholic Health Initiatives), series 2000A; --$8,010,000 Maryland Health and Higher Educational Facilities Authority revenue bonds (Catholic Health Initiatives), series 2000A; --$26,455,000 Montgomery County, Ohio revenue bonds (Catholic Health Initiatives), series 2000A; --$5,510,000 Hospital Facility Authority of Umatilla County, Oregon revenue bonds (Catholic Health Initiatives), series 2000A; --$15,415,000 Washington Health Care Facilities Authority revenue bonds, (Catholic Health Initiatives), series 2000A;(1) --$34,600,000 Pulaski County, Arkansas Pulaski County is the largest county by population in the U.S. state of Arkansas with a population of 361,474 at the 2000 United States Census. Its county seat is at Little Rock which is also Arkansas' capital & largest city. Health Facilities Board variable-rate demand revenue bonds (Catholic Health Initiatives), series 2000B; --$73,800,000 Colorado Health Facilities Authority variable-rate demand revenue bonds (Catholic Health Initiatives), series 2000B; --$89,300,000 The Health, Educational and Housing Facility Board of City of Chattanooga, Tennessee “Chattanooga” redirects here. For other uses, see Chattanooga (disambiguation). Chattanooga is the fourth-largest city in Tennessee (after Memphis, Nashville, and Knoxville), and the seat of Hamilton CountyGR6 (Catholic Health Initiatives), series 1998A; --$53,435,000 Colorado Health Facilities Authority revenue bonds (Catholic Health Initiatives), series 1998A; --$16,445,000 The Industrial Development Authority of the City of Joplin, Missouri Joplin is a city located in parts of southern Jasper County and northern Newton County in the southwestern corner of Missouri. Joplin is the largest city in Jasper County, though it is not the county seat. revenue bonds (Catholic Health Initiatives), series 1998A; --$77,710,000 Kentucky Economic Development Finance Authority revenue bonds (Catholic Health Initiatives), series 1998A; --$28,140,000 Pulaski County, Arkansas Health Facilities Board revenue bonds (Catholic Health Initiatives), series 1998A; --$24,310,000 Polk County, Iowa Polk County is a county located in the U.S. state of Iowa. As of 2000, the population was 374,601. The 2006 estimate is 408,888.[2] Its county seat is Des Moines6, which is also the capital city of Iowa. , revenue bonds (Catholic Health Initiatives), series 1998A; --$18,015,000 Kansas Development Finance Authority revenue bonds (Catholic Health Initiatives), series 1998J; --$11,600,000 Colorado Health Facilities Authority revenue bonds (Catholic Health Initiatives), series 1997A; --$7,665,000 City of Dickinson, ND, revenue bonds (Catholic Health Initiatives), series 1997A; --$29,555,000 The Industrial Development Authority of the City of Joplin, MO, revenue bonds (Catholic Health Initiatives), series 1997A; --$39,795,000 Nebraska Investment Finance Authority revenue bonds (Catholic Health Initiatives), series 1997A; --$30,115,000 Polk County Polk County is the name of twelve counties in the United States, all except two named after president of the United States James Knox Polk:
--$34,300,000 Montgomery County, OH, revenue bonds (Catholic Health Initiatives), series 1997A; --$58,205,000 Washington Health Care Facilities Authority revenue bonds (Catholic Health Initiatives), series 1997A;(1) --$106,100,000 Colorado Health Facilities Authority variable-rate demand revenue bonds (Catholic Health Initiatives), series 1997B;(1) --$18,600,000 Maryland Health and Higher Educational Facilities Authority variable-rate demand revenue bonds (Catholic Health Initiatives), series 1997B; --$32,100,000 Montgomery County, OH, variable-rate demand revenue bonds (Catholic Health Initiatives), series 1997B; --$11,400,000 Saint Mary Hospital Authority variable-rate demand revenue bonds (Catholic Health Initiatives), series 1997B; --$12,600,000 Hospital Facility Authority of Umatilla County, OR, variable-rate demand revenue bonds (Catholic Health Initiatives), series 1997B; --$970,000 City of Garden City, KS, health facilities revenue bonds, series 1995C; --$7,320,000 Hospital Authority #2 of Douglas County Douglas County is the name of twelve counties in the United States:
--$3,595,000 Hospital Facility Authority of Ontario, OR, health facilities revenue bonds, series 1995C; --$11,580,000 City of Williston, ND, health facilities revenue bonds, series 1995C; --$6,515,000 St. Mary Hospital Authority, hospital revenue refunding bonds (Franciscan Health System Hospital Issue), series 1989A; --$14,500,000 Township of Bruce Hospital Financing Authority, MI, SCHCS adjustment-rate tender securities (ARTS) 1988A; --$1,200,000 Township of Bruce Hospital Financing Authority, MI, SCHCS adjustment-rate tender securities (ARTS) 1988B; (1)These issues are insured by MBIA MBIA Montana Building Industry Association MBIA Municipal Bond Insurance Association MBIA Michigan Boating Industries Association MBIA Municipal Bond Investors Assurance MBIA Massachusetts Brain Injury Association MBIA Maryland Business Incubation Association Insurance Corp., whose insurer financial strength is rated 'AAA' by Fitch. For these issues, "AA" is an underlying rating, given withought consideration of such credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing . Outstanding Bonds with Short-Term 'F1+' Rating: --$58.9 million Health, Education and Housing Facility Board of the City of Chattanooga, Tennessee variable-rate demand bonds (Catholic Health Initiatives), series 2004C; --$37.8 million Kentucky Economic Development Finance Authority variable-rate demand bonds (Catholic Health Initiatives), series 2004C. --$66.7 million St. Mary Hospital Authority, Pennsylvania variable-rate demand bonds (Catholic Health Initiatives), series 2004C; 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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