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Fitch Revises Missouri Health & Educational Facilities Authority 2005 SSM Revs to 'AAA/F1'
NEW YORK-(Business Wire)-May 6, 2008 - Fitch Ratings has confirmed the long-term 'AAA' rating and assigned a short-term 'F1+' rating to the Health and Educational Facilities Authority of the State of Missouri's $241,575,000 health facilities revenue bonds (SSM Healthcare) series 2005, consisting of the following subseries:
—$54,600,000 subseries 2005A-2;
—$72,700,000 subseries C-1;
—$42,100,000 subseries D-1;
—$42,100,000 subseries D-2;
—$30,075,000 subseries D-3.
The long-term 'AAA' rating assigned to the bonds is based on the support of separate municipal bond insurance policies provided by Financial Security Assurance, Inc. for each subseries of bonds. Each policy insures scheduled payments of principal and interest on the bonds, effective when bonds were originally issued in 2005. The insurance policies extend to the maturity dates of the bonds, which are:
—June 1, 2035 for A-2;
—June 1, 2019 for C-2;
—June 1, 2033 for D-1, D-2 and D-3.
The short-term 'F1+' rating is based on the liquidity support of separate standby bond purchase agreements (SBPAs) to be provided by Dexia Credit Local, acting through its New York Branch (Dexia), for each subseries of bonds.
The subseries C-1 bonds will be reoffered in a daily interest rate mode on May 15, 2008, the effective date of the related Dexia SBPA. Each other susbseries of bonds will be reoffered in a weekly interest rate mode on the following dates, when the related Dexia SBPAs will become effective:
—May 9, 2008 for subseries D-3;
—May 12, 2008 for subseries A-2;
—May 14, 2008 for subseries D-1;
—May 15, 2008 for subseries D-2.
The remarketing agent for the subseries A-2 and D-2 bonds is Citigroup Global Markets, Inc. The remarketing agent for the remaining subseries of bonds is UBS Securities LLC.
Each SBPA will provide for the payment of the purchase price of tendered bonds during the daily and weekly interest rate modes, and will be sized to cover the principal portion of the purchase price and 34 days of interest, at the maximum interest rate of 12%, based upon a year of 365 days. The ratings for each subseries of bonds will expire on the stated expiration date of the SBPA, Sept. 1, 2011, unless such date is extended, or upon the occurrence of certain events of termination as specified in the SBPAs.
Each subseries may be converted to a weekly, daily, short-term, long-term mode, indexed put, auction or fixed rate mode. While bonds bear interest in the weekly or daily modes, interest is payable on the first business day of each month, commencing June 2, 2008. During the weekly and daily rate modes, holders have the option to tender their bonds on any business day, following required notice to the tender agent. Any subseries of bonds is subject to mandatory tender: (1) each interest rate conversion date; (2) on the first day after the end of each long- or short-term interest rate period; (3) on 5 days prior to the expiration or termination date and on the substitution date of an SBPA; (4) on the date of substitution or termination of a bond insurance policy securing the bonds. Optional and mandatory redemption provisions also apply to the bonds pursuant to the terms of the documents.
The bonds are being remarketed in connection with conversion of each subseries from auction-rate mode.
Fitch's rating definitions and the terms of use 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 are also available from the 'Code of Conduct' section of this site.
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