Fitch Confirms Nemours Foundation (Florida) $24.6MM Ser 2007 Bonds 'F1+'; Affs 'AAA' L-T Rating.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 -- 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. confirms the short-term rating of 'F1+' for $24.35 million Jacksonville Health Facilities Authority (the authority) tax-exempt health facilities revenue bonds, series 2007, issued on behalf of The Nemours Foundation The Nemours Foundation is a non-profit organization established in 1936 from the 1935 Alfred I. duPont Testamentary Trust [1]. During his lifetime, Alfred I. du Pont was a successful industrialist, prolific inventor, published musician and quiet benefactor to a multitude (Nemours). At this time Fitch also affirms the long-term rating of 'AAA' on all of Nemours' outstanding debt. The bonds are an unsecured general obligation of Nemours. The auction period of the bonds is nine months. The Rating Outlook is Stable. The 'AAA' rating reflects Nemours' substantial, albeit reduced, liquidity; positive operating performance; and management's proactive style. Primary credit concerns include a significant reduction in the value of the duPont Trust and Nemours' exposure to the volatile health care industry. As have other health care providers, Nemours has had to adjust past budgets to accommodate rising expenses and changes in reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. . The success of its process is displayed in a consistently positive operating performance. The short-term 'F1+' rating is based on Nemours' internal liquidity, consisting of a significant level of highly rated, highly liquid investments. As of Nov. 30, 2008, Nemours had $57 million of overnight available funds with which Nemours would be able to cover the failed put of the series 2007 bonds at least 2.1 times (x). Nemours is essentially the sole beneficiary of the Alfred I. duPont Testamentary Trust testamentary trust n. a trust created by the terms of a will. Example: "The residue of my estate shall form the corpus (body) of a trust, with the executor as trustee, for my children's health and education, which shall terminate when the last child attains the age (the duPont Trust) valued at $3.25 billion as of Dec. 31, 2008, down 28.5% from fiscal 2007. Nemours' annual trust distribution, calculated at 3% of the trust's market value as of the end of the prior fiscal year, was $137.8 million as of Dec. 31, 2008, representing approximately 21% of total unrestricted revenues. Reductions in the market value of the trust result in a decrease in the trust's distribution to Nemours, which could have an adverse effect on its financial performance if not offset. Fitch believes that the Trust's strong sense of duty to provide financial support of the Nemours' mission in perpetuity Of endless duration; not subject to termination. The phrase in perpetuity is often used in the grant of an Easement to a utility company. in perpetuity adj. forever, as in one's right to keep the profits from the land in perpetuity. works to assure that the Trustees will make the necessary strategic decisions over time to maintain the value of the Trust. As of Nov. 30, 2008, Nemours' available funds (as measured by unrestricted and temporarily restricted cash and investments) equaled $432.4 million, down 38.3% from fiscal 2007. Although reduced, liquidity ratios remain strong as available funds represented 75% of unrestricted expenses and covered outstanding debt by approximately 4x for the period. Maximum annual debt service (MADS) is $4.7 million and represented a minimal 0.7% of unrestricted revenues. The low debt burden is attributable to Nemours' history of funding capital improvements with cash flow and the distribution it receives from the duPont Trust. Nemours is a Florida not-for-profit corporation A not-for-profit corporation is a corporation created by statute, government or judicial authority that is not intended to provide a profit to the owners or members. A corporation that is organized to provide profits to its owners or members is a for-profit corporation. created by the last will and testament of Alfred I. duPont to provide for 'the care and treatment of crippled crip·ple n. 1. A person or animal that is partially disabled or unable to use a limb or limbs: cannot race a horse that is a cripple. 2. A damaged or defective object or device. tr.v. children.' Established in 1936, Nemours is an operating foundation with a focus on clinical operations and services, together with health promotion and advocacy. 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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