Fitch Rates Bishop Gadsden's (South Carolina) $28MM 2007 Bonds 'BBB'; Outlook Stable.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 a 'BBB' rating to the 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. Jobs-Economic Development Authority's (the authority) $28.05 million first mortgage health facilities refunding revenue bonds (The Episcopal Church Episcopal Church, Anglican church of the United States. Its separate existence as an American ecclesiastical body with its own episcopate began in 1789. Doctrine and Organization Home dba Bishop Gadsden), series 2007. The series 2007 bonds are scheduled to be sold the week of March 26 through negotiation led by Ziegler Capital Markets Group. Fitch also affirms the underlying 'BBB' rating on the authority's $45.8 million variable-rate demand health facilities revenue and refunding Bonds (The Episcopal Church Home) series 2002. In 2006, Bishop Gadsden converted approximately $20.75 million of the series 2002 bonds to fixed rate. The 2002 bonds are rated 'AA/F1+' based on a bond insurance policy provided by Radian Asset Assurance, Inc. and by a standby bond purchase agreement provided by Wachovia Bank, National Association. The Rating Outlook is Stable. Bishop Gadsden Retirement Community's (Bishop Gadsden) primary credit strengths continue to be its excellent demand, a strong liquidity relative to expenses, profitable operations, and an attractive physical plant. Bishop Gadsden's occupancy is at or near 100%, which along with stable investment returns has led to good excess margins operations since 1999. At the fiscal year-ended Dec. 31, 2006, Bishop Gadsden had unrestricted cash of $41.4 million which equates to 849 days of operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and 60% cash to debt. Bishop Gadsden has differentiated itself in its market through exceptionally well designed facilities which further enhance demand. Fitch's chief concern is Bishop Gadsden's high debt burden relative to revenues. Maximum annual debt service as a percentage of total operating revenues remains very high at 22.7% in 2006, but has been declining over the past several years. Debt service coverage through Dec. 31, 2006 was lower than Fitch's 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. median at 1.7 times (x). However, revenue-only coverage was 1.1x, which is above the 0.6x median for type-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 communities (CCRCs). Bishop Gadsden's rating and Stable Outlook reflects management's success in achieving a strong and stable financial performance. Fitch believes that the organization will be challenged by the housing market downturn and rising expenses over the near term, but expects its solid demand and strong balance sheet to provide adequate cushion for the future. The Bishop Gadsden Retirement Community is a type A 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 with 215 independent living units, 101 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 (including a 20-bed Alzheimer Unit) , and 50 nursing care beds. The Community is located on James Island approximately six miles from downtown Charleston. Bishop Gadsden had total operating revenues of $22.83 million in fiscal 2006. Bishop Gadsden covenants to provide annual and quarterly disclosure to bondholders through the nationally recognized municipal securities information repositories. Fitch views Bishop Gadsden's disclosure favorably. 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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