Fitch to Upgrade Bon Secours Health System Revs to 'AA-/F1+'

  Fitch to Upgrade Bon Secours Health System Revs to 'AA-/F1+'

Business Wire

NEW YORK -- January 7, 2013

On the effective date of Jan. 9, 2013, Fitch Ratings will upgrade the ratings
on the following Bon Secours Health System, Inc. bonds to 'AA-/F1+' from
'A/F1':

--$30,365,000 (currently outstanding $23,590,000) South Carolina Jobs-Economic
Development Authority Economic Development revenue refunding bonds, series
2008D; and

--$31,460,000 (currently outstanding $24,460,000) Economic Development
Authority of Hanover County, VA revenue refunding bonds, series 2008D-1.

The Rating Outlook is Stable.

The rating actions are being taken in connection with (i) the substitution of
the irrevocable direct pay letters of credit (LOCs) currently provided by
Citibank, NA (rated 'A/F1', Stable Outlook) with two substitute LOCs to be
provided by The Bank of New York Mellon (rated 'AA-/F1+', Stable Outlook) and
(ii) the Jan. 9, 2013 mandatory tender and reoffering of the bonds in the
weekly rate mode and the provision of the substitute LOCs.

The long-term 'AA-' Stable Outlook rating will be based on the higher of the
'AA-' Stable Outlook rating assigned by Fitch to The Bank of New York Mellon,
which will provide two separate LOCs securing the bonds, and the 'A-' Stable
Outlook long-term underlying rating assigned by Fitch to the bonds. (For more
information on the underlying long-term rating please see
'www.fitchratings.com' for the press release published Dec. 7, 2012.) The
short-term 'F1+' ratings will be based solely on the support of the substitute
LOCs.

Pursuant to the substitute LOCs, the bank is obligated to make payments of
principal of and interest on the bonds upon maturity, acceleration and
redemption, as well as purchase price for tendered bonds. The rating on each
series of bonds will expire upon the earliest of: (a) Jan. 9, 2018, the
initial stated expiration date of the substitute LOCs, unless such date is
extended; (b) conversion to any interest rate mode other than weekly; (c) any
prior termination of a related substitute LOC; and (d) defeasance of the
bonds. The substitute LOCs provide full and sufficient coverage of principal
plus an amount equal to 49 days of interest at a maximum rate of 12% based on
a year of 365 days and purchase price for tendered bonds, while in the weekly
rate mode. BNY Mellon Capital Markets, LLC is the remarketing agent for the
bonds.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria & Related Research:

--'U.S. Municipal Structured Finance Criteria', Feb. 28, 2012;

--'Rating Guidelines for Letter of Credit-Supported Bonds', July 20, 2012.

Applicable Criteria and Related Research:

U.S. Municipal Structured Finance Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=672570

Rating Guidelines for Letter of Credit-Supported Bonds

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=681737

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS.
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING
DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S
PUBLIC WEBSITE '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 ARE ALSO AVAILABLE FROM
THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Contact:

Fitch Ratings
Primary Analyst
Linda Friedman
Senior Director
+1-212-908-0727
Fitch, Inc.
One State Street Plaza, New York, NY 10004
or
Secondary Analyst
Joseph Staffa
Senior Director
+1-212-908-0829
or
Committee Chairperson
Trudy Zibit
Managing Director
+1-212-908-0689
or
Media Relations:
Elizabeth Fogerty, +1-212-908-0526 (New York)
elizabeth.fogerty@fitchratings.com
 
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