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Fitch Rates Catholic Healthcare West (California) $525MM 2008 Bonds 'A+'; Outlook Positive
CHICAGO-(Business Wire)-May 6, 2008 - Fitch Ratings has assigned an 'A+' rating to approximately $226.3 million California Statewide Communities Development Authority revenue bonds (Catholic Healthcare West), series 2008A-E and approximately $298.7 million California Health Facilities Financing Authority revenue bonds (Catholic Healthcare West), series 2008G-L. In addition, Fitch has also affirmed its rating on Catholic Healthcare West's (CHW) outstanding bonds at 'A+'. The Rating Outlook is Positive.
The above referenced bonds are being issued in exchange for certain auction rate bonds currently outstanding. On the date of issuance of the above referenced series 2008 bonds, CHW will acquire the outstanding auction rate securities (ARS) by mandatory tender. The outstanding bonds will then be exchanged by the California Statewide Communities Development Authority and the California Health Facilities Financing Authority in the same principal amounts outstanding. The prior bonds will then be cancelled. In addition, CHW expects to exchange $745.9 million of outstanding ARS bonds to series 2008 variable rate demand bonds secured by letters of credit. Fitch was not requested to provide ratings on the series 2008 variable rate demand bonds.
For a complete description of Fitch's credit opinion supporting the 'A+' rating, see Fitch's press release on Catholic Healthcare West dated April 9, 2008.
CHW is a not-for-profit Catholic health system with 41 total healthcare facilities, 34 of which are located in California, three in Arizona, and four in Nevada. Total revenue in fiscal 2007 was $7.5 billion. CHW covenants to disclose audited annual financial statements and quarterly results to bondholders. CHW's disclosure is one of the best in Fitch's portfolio. Quarterly financials are reviewed by CHW's auditor and include an income statement, balance sheet, and cash flow statement. In addition, management hosts quarterly investor calls and posts all financial information on its website at www.chwhealth.org.
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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