Fitch Rates Montana Facility Finance Authority's $23.5MM Health Care Revs 'AA-'.SAN FRANCISCO San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden -- 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 'AA-' rating to the Montana Facility Finance Authority's (the authority) $23,500,000 health care facilities revenue bonds (master loan program - St. Luke Community Healthcare Network Project, Ronan, Montana Ronan is a city located in Northwest Montana in Lake County, Montana on the Flathead Indian Reservation about 12 miles south of Flathead Lake. The population was 1,812 at the 2000 census. Ronan is located in Lake County. ) series 2007C. Fitch has also affirms the following ratings with a Stable Rating Outlook: Montana Facility Finance Authority --$50 million in outstanding debt 'AA-'. Montana Board of Investment --$98.9 million outstanding INTERCAP bonds 'AA-/F1+'. The bonds will be sold through negotiation by Raymond James  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . on or about June 12, 2007. The ratings reflects the continued low leveraging of the Montana Board of Investment's (the Board) debt service reserve replenishment replenishment the addition of an appropriate quantity of properly prepared solution containing the correct concentration of chemicals to the developer solutions used in radiography. guarantee as well as the authority's and the board's sound record in loan repayments. The authority previously was known as the Montana Health Facility Authority, and debt issued under that name remains outstanding. All authority debt is secured by loan repayments from individual borrowers, with bondholder Bondholder A firm often has stockholders and bondholders. In a liquidation, the bondholders have first priority. bondholder An individual or institution that owns bonds in a corporation or other organization. security enhanced by the board's irrevocable Unable to cancel or recall; that which is unalterable or irreversible. IRREVOCABLE. That which cannot be revoked. 2. A will may at all times be revoked by the same person who made it, he having a disposing mind; but the moment the testator is and unconditional pledge to make up any deficiency in the debt service reserve fund. Fitch's rating is based on the board's obligation and its substantial resources available, totaling $1.22 billion at June 30, 2006. A similar pledge enhances debt issued by the board itself, although the total amount of all board obligations is small relative to its sizable siz·a·ble also size·a·ble adj. Of considerable size; fairly large. siz  a·ble·ness n. and secure available funds.
The board also provides liquidity for $98.8 million of its own bonds,
again holding adequate resources for this need. To date, the board has
not had to make any reserve fund replenishment deposits for its or the
authority's programs, or for liquidity payments.
The security provided by the board's back-up pledge remains strong despite increases in debt issuance. Authority and board issuance have risen recently to meet health facility needs and as state departments join local governments as borrowers in the board's programs. Fitch notes the Montana Legislature's increased segregation of board resources for public and private loans, thereby reducing the amount available to meet the debt service reserve fund make up pledge. Fitch also recognizes that the amount available remains very high. The board's resources with which to meet its debt service reserve fund make-up pledges remain well in excess of the total bond par covered. The identified funds consist of the Treasurer's Fund (the state's operating fund) and a portion of the Coal Severance Trust Fund (CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. ). The Treasurer's Fund totaled $762.3 million at June 30, 2006, and the CST $725.2 million, with $455.4 million of this available for debt service reserve replenishment if needed. The board's available funds vary in amount throughout the year and have fluctuated over time, ranging from a low of $735.3 million in fiscal 2002 to the current $1.22 billion high. Despite the fluctuation, the available funds remain well in excess of the amount of debt enhanced, which is limited by statute or policy to $252 million outstanding (an increase effective July 1, 2007 from $240 million). After this issuance, debt outstanding with a board pledge as security will total $164.7 million, consisting of $99 million in board-issued bonds for its local government and state departments loan program (INTERCAP), $61.5 million in Montana Facility Finance Authority debt, and $4.2 million in other commitments. The corpus of the CST fund cannot be invaded without approval by three-quarters of the state legislature A state legislature may refer to a legislative branch or body of a political subdivision in a federal system. The following legislatures exist in the following political subdivisions: The series 2007C bonds are secured by loan repayments made by St. Luke Community Healthcare Network as the borrower. St. Luke operates a 25-bed critical access hospital and a 75-bed nursing home in Lake County. The hospital provides about 90% of the pledged revenue. Financial results for 2006 show good profitability with 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 $2.7 million, and strong pro-forma debt service coverage of 3.2 times. 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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