Fitch Rates `BBB+' Friendship Village West County of St. Louis, MO.Business Editors NEW YORK--(BUSINESS WIRE)--Sept. 27, 2000 The Industrial Development Authority of the County of St. Louis, MO's $3.7 million series 2000A revenue bonds, Friendship Village of West County Project (FVWC FVWC Fox Valley Wildlife Center (Kane County, IL) ), are rated `BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. +' by Fitch. In addition, Fitch affirms its outstanding rating on approximately $4.7 million of the Industrial Development Authority of the County of St. Louis, MO's series 1996A revenue bonds, Friendship Village of West County Project at `BBB+'. The series 2000B variable rate demand bonds in the amount of $3.6 million are backed by a letter of credit from LaSalle Bank N.A. and have not been rated by Fitch. The `BBB+' rating is supported by historically high occupancies, good liquidity, solid profitability, and an effective management team. Average occupancy rates over the last four years of 94% in the independent living units, and 91% the nursing and assisted living as·sist·ed living n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. units, have supported FVWC's consistent liquidity and profitability. Proforma days cash on hand at June 30, 2000 was 468.1 days comparing favorably to Fitch's `BBB' median of 307.8 days. FVWC's excess margin of 4.4% for fiscal year-end Fiscal Year-End The completion of a one-year, or 12-month, accounting period. Notes: The reason that a company's fiscal year often differs from the calendar year and does not close on Dec 31, is due to the nature of company's needs. 2000 also exceeds Fitch's `BBB' excess margin median of 2.7% and has been consistently strong. Moreover, the facilities are managed by Lifecare Services (LCS LCS - Language for Communicating Systems ) which currently manages over 90 long-term care facilities throughout the country and brings a depth of resources and knowledge to its clients. Primary concerns are an increased debt burden, increased competition in the market, and FVWC's older physical plant. With the addition of the series 2000 bonds the debt burden will be moderate as indicated by proforma maximum annual debt service (MADS) as a percentage of revenue of 13.2%, and cash to debt of 65.4%. Also of concern is the high level of competition that will enter the market in the next few years, which is somewhat mitigated by FVWC's low cost of services compared to its competitors. Lastly, FVWC's average age of plant is a relatively high 11.7 years. Fitch believes FVWC's management will be challenged by increased competition in the market but should be able to maintain strong occupancy through expected facility improvements and continued strong marketing. FVWC operates a continuing care continuing care a professional convention that a veterinarian who is treating an animal is obliged to continue treating that case unless an arrangement is made with its custodian to transfer the care to another practitioner or to a specialist. retirement community with 265 independent living units, 22 assisted living units, and 99 skilled nursing beds, in Chesterfield, MO. Since 1975 the facility has been continually managed by Life Care Services LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , Des Moines, Iowa “Des Moines” redirects here. For other uses, see Des Moines (disambiguation). Des Moines (pronounced /dɪˈmɔɪn/ in English, . Fitch is an international rating agency that provides global capital market investors with the highest quality ratings and research. Dual headquartered in New York and London with a major office in Chicago, Fitch rates entities in 75 countries and has some 1,100 employees in more than 40 local offices worldwide. The agency, which is a combination of Fitch IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals and Duff & Phelps Credit Rating Co., provides ratings for Financial Institutions, Insurance, Corporates, Structured Finance, Sovereigns and Public Finance Markets worldwide. |
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