Fitch Rts $178MM New York Dorm Mental Health Svcs Rev Bnds `AA-'.Business Editors NEW YORK--(BUSINESS WIRE)--Dec. 12, 2001 Fitch rates the Dormitory Authority of the State of New York's $178,055,000 mental health services' facilities revenue bonds, comprised of $36,125,000 series 2001A and $141,930,000 series 2001B, `AA-'. The bonds are expected Dec. 13 through negotiation with a syndicate led by JPMorgan and Bear, Stearns & Co. Inc. Bonds will be due Feb. 15 and August 15 beginning August 15, 2002, with details and call features yet to be determined. The bonds will be on parity with the authority's approximately $2.266 billion mental health services health services Managed care The benefits covered under a health contract facilities improvement bonds (`AA-' rating affirmed) under a resolution adopted in 1996, following the 1995 consolidation of the Medical Care Facilities Finance Agency (MCFFA MCFFA Ministerial Council on Forestry, Fisheries and Aquaculture (Australia) ) and the Facilities Development Corp. into the Dormitory Authority. Bonds issued under the resolution are secured by financing agreements Financing Agreements In the context of project financing, the documents which provide the project financing and sponsor support for the project as defined in the project contracts. with the state Department of Mental Hygiene mental hygiene, the science of promoting mental health and preventing mental illness through the application of psychiatry and psychology. A more commonly used term today is mental health. and voluntary agencies which provide for a pledge of the annual payments, net of state administrative fees, received by the authority from provision of mental health services through both the state's institutional facilities and the community-based (voluntary) agencies. Although bonds are subordinate to approximately $1.3 billion prior MCFFA resolution (now closed) bonds remaining outstanding, the state's budget includes a single appropriation for both categories of debt service payments. Annual payments are subject to legislative appropriation. The `AA-' rating on these bonds reflects the state's long- term commitment to operating essential mental health facilities, mandated by the constitution and upheld by judicial decisions. In addition to the considerable state general fund operating support that was substantially increased (by 23.7%) in the current year, the securing annual payments represent about $2 billion of mental hygiene patient care revenues, with debt service a first claim. Estimated peak debt service of about $350 million is well covered at about six times by the payments. The state has operated mental health facilities since 1927. Growth of patient care reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. revenues, about 90% of which is provided by Medicaid, has flattened flat·ten v. flat·tened, flat·ten·ing, flat·tens v.tr. 1. To make flat or flatter. 2. To knock down; lay low: The boxer was flattened with one punch. recently and is expected to slightly decline through fiscal 2003, necessitating the increase in general fund support. De- institutionalization Institutionalization The gradual domination of financial markets by institutional investors, as opposed to individual investors. This process has occurred throughout the industrialized world. is continuing, though slowing as the institutional population approaches the projected long-term core level. The series 2001A bonds will be applied for voluntary agency projects and the series 2001B bonds for state facilities projects; $22 million bonds will remain authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: but unissued under this resolution. 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 , rated `AA' by Fitch, has a broad, diverse economy with substantial wealth and resources and growth has led to very successful financial operations in the past few years. While debt structure is complex, the burden on resources remains moderate. Although the effects of Sept. 11 are not yet fully assessable, New York will suffer significant revenue loss at least in the short term. Reserves are in excess of the estimated $1.5 billion shortfall for the rest of this fiscal year, which ends March 31. Longer term implications will not be clear for some time. |
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