Fitch Rates ACTS Retirement-Life Communities (Pennsylvania) 2006 Bonds 'A-'; Outlook to Positive.TAMPA, Fla. -- 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 an 'A-' rating to ACTS Retirement-Life Communities' (ACTS) series 2006 bonds listed below. Montgomery County Montgomery County may refer to:
--$94.9 million retirement community revenue bonds, series 2006 A&B 'A-'; Palm Beach County Health Facilities Authority --$42 million retirement community revenue bonds, series 2006 A&B, 'A-'. The bonds are expected to sell the week of Dec. 4, 2006 via negotiation by Goldman Sachs The Goldman Sachs Group, Inc., or simply Goldman Sachs (NYSE: GS) is one of the world's largest global investment banks. Goldman Sachs was founded in 1869, and is headquartered in the Lower Manhattan area of New York City at 85 Broad Street. . Fitch has also affirmed ACTS' outstanding ratings and revised the Rating outlook to Positive from Stable. The Outlook revision to positive reflects Fitch's expectation that ACTS' 2007 performance will be meet the budgeted net 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. of $5.05 million and continue the strong financial performance of the obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. group over the past two years. Should 2007 meet expectations, Fitch may upgrade ACTS. The 2006 bonds will be used to refund certain outstanding indebtedness of the obligated group, refinance ACTS' commercial paper program, provide approximately $15 million for capital expenditures and pay the costs of issuance on the bonds. The 'A-' rating is based on ACTS' strong and improved financial performance, significant resident and revenue base, strong demand, effective management practices, and solid debt service coverage. ACTS is one of the nation's largest not-for-profit 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 (CCRC Noun 1. CCRC - an agency in the Department of Defense that is a national center for research on all aspects of injury control and casualty care Casualty Care Research Center ) systems, with 18 communities in five states. The obligated group includes 16 facilities in four states and excludes Park Pointe Village in South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. and Azalea azalea (əzāl`yə) [Gr.,=dry], any species of the genus Rhododendron, North American and Asian shrubs of the family Ericaceae (heath family) that are distinguished by the usually deciduous leaves. Trace in Florida. Total revenue for the obligated group was $241 million in fiscal 2005, approximately twice the revenue size of Fitch's next largest rated CCRC system. Fitch has placed significant weight on ACTS' revenue size due to the financial flexibility it affords the system. The large revenue base allows the system to achieve operating and cost efficiencies through clusters of communities in each market, and rely on a steady turnover of units. Demand is strong and historical occupancy for independent living units (ILUs) have been above 95% for the last four years and the nine months ended Sept. 30, 2006. Fitch views management's practices favorably as ACTS has demonstrated successful experience with start-up facilities, effective budgeting, and financial and strategic planning Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. . Debt service coverage is solid and has been above 2.1 times (x) the last five years and was 3.1x through the interim period, compared to Fitch's 'A' median of 2.9x. The main credit concerns include the light liquidity for the rating category and reliance on entrance fees to cover debt service. ACTS has ongoing development plans although no significant projects will occur in the near term. Fitch views this favorably and management has demonstrated balanced growth in the past. Currently, ACTS owns two parcels of land but only one will likely be developed in the future while the other one may be sold. ACTS relies on entrance fees to cover debt service with revenue-only coverage averaging negative 0.7x the last four fiscal years. However, this is typical for a Type-A facility and turnover is less of a concern for this organization, since it has more actuarial reliability due to its large resident base. Although several financial indicators compare unfavorably to Fitch's 'A' medians, ACTS' strong qualitative indicators, including effective management practices, geographic diversification, and its size and reputation have factored significantly into its rating. ACTS covenants to provide annual disclosure to bondholders and the NRMSIRs within 120 days of fiscal year end and quarterly disclosure (unaudited balance sheet and income statement and cash flow statement) within 45 days of quarter end. Fitch views ACTS' disclosure favorably and believes it should serve as a model for the industry. Fitch has affirmed and revised the Rating Outlook to Positive on the outstanding ratings for ACTS: Gainesville and Hall County Development Authority (GA) --$4,500,000 senior living facility variable-rate demand revenue bonds (Lanier Village Estates, Inc. Project), series 2003A (1) 'A-'; --$38,500,000 senior living facility variable-rate demand revenue bonds (Lanier Village Estates, Inc. Project), series 2003B (2) 'AA' ('A-' underlying rating); --$8,150,000 senior living facility variable-rate demand revenue bonds (Lanier Village Estates, Inc. Project) series 2003C (3) 'A-'; --$1,335,000 senior living facility variable-rate demand revenue bonds series 1999A (1) 'A-'; --$14,000,000 senior living facility revenue bonds, series 1999c final term bond 'A-'. ACTS Retirement-Life Communities, Inc. --$19,025,000 taxable corporate obligation variable-rate demand revenue bonds, series 2003A (1) 'A-'. Montgomery County Industrial Development Authority (PA) --$15,345,000 retirement community variable-rate demand revenue bonds, series 2002 (2) 'AA' ('A- 'underlying rating); --$70,000,000 retirement community revenue bonds series 1998 'A-'; --$19,805,000 retirement community revenue bonds series 1996A 'A-'(a) --$51,315,000 retirement community revenue bonds series 1996B 'A-'.(a) Palm Beach County Health Facilities Authority --$14,555,000 retirement community revenue bonds series 1998 'A-'; --$24,215,000 retirement community revenue bonds series 1996 'A-'.(a) North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. Medical Care Commission --$11,100,000 retirement community variable-rate demand revenue bonds series 1996 (2) 'AA' ('A-' underlying rating). (1) This is an underlying rating. These bonds are backed by an irrevocable direct pay letter of credit from Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. , N.A. (2) These bonds are insured by Radian ra·di·an n. Abbr. rad A unit of angular measure equal to the angle subtended at the center of a circle by an arc equal in length to the radius of the circle. Asset Assurance with a standby bond purchase agreement from LaSalle Bank National Association as the liquidity facility. (3) This is an underlying rating. These bonds are backed by an irrevocable direct pay letter of credit from Allied Irish Banks Allied Irish Banks, p.l.c. (AIB) (Irish: Bainc-Aontas Éireann),ISEQ: ALBK, LSE: ALBK, NYSE: AIB, FWB: AIB is a commercial bank based in Ireland not to be mistaken for Anglo Irish Bank. AIB is one of the so called Big Four commercial banks in Ireland. , p.l.c., 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 Branch. (a) Bonds will be refunded with a portion of the proceeds of the 2006 bonds. 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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