Fitch Rates IL Fin Auth VRDBs (Little Co of Mary Hosp), Ser 2008 A & B 'A/F1'

NEW YORK--(BUSINESS WIRE)--

Fitch Ratings has assigned a rating of 'A/F1', Stable Outlook to the Illinois Finance Authority variable rate demand revenue bonds (Little Company of Mary Hospital and Health Care Centers), consisting of: $54,240,000 series 2008A bonds and $54,235,000 series 2008B.

KEY RATING DRIVERS:

The ratings are based on the support provided by irrevocable direct-pay letters of credit (LOCs) issued by Barclays Bank PLC,(rated 'A/F1', Stable Outlook).

The bonds were supported by LOCs issued by JPMorgan Chase Bank, N.A. and not rated by Fitch. Fitch has assigned ratings to the bonds in connection with the provisions of the substitute series LOCs provided by Barclays Bank, PLC.

The bank is obligated to make regularly scheduled payments of principal of and interest on the bonds in addition to payments due upon maturity, acceleration and redemption, as well as purchase price for tendered bonds. The ratings will expire upon the earliest of: (a) June 29, 2018, the initial stated expiration date of the LOCs, unless such date is extended; (b) conversion to a mode other than weekly or daily; (c) any prior termination of the LOCs; and (d) defeasance of the bonds. The LOCs provide full and sufficient coverage of principal plus an amount equal to 45 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 and daily rate modes. The Remarketing Agent for the bonds is Barclays Capital Inc. The bonds were mandatorily tendered and reoffered on July 1, 2015.

The bonds bear interest at a weekly rate, but may be converted to a daily, flexible, term, auction or fixed rate. While bonds bear interest in the weekly or daily rate mode, interest payments are on the first business day of each month. The next scheduled interest payment date is Aug. 3, 2015. The trustee is obligated to make timely draws on each series LOC to pay principal, interest, and purchase price. Funds drawn under the LOCs are held invested in accordance with rating guidelines and mature when needed, and are free from any lien prior to that of the bondholders.

Holders may tender their bonds on any business day, provided the trustee and remarketing agent is given the requisite prior notice of the purchase. The bonds are subject to mandatory tender: (1) upon conversion of the interest rate (except between weekly and daily); (2) upon expiration, substitution or termination of the LOC; (3) following receipt of written notice from the bank of an event of default under the reimbursement agreement, and (4) following receipt of notice from the bank that the interest component will not be reinstated directing such mandatory tender. Optional and mandatory redemption provisions also apply to the bonds. There are no provisions for the issuance of additional bonds.

Bond proceeds were used for the acquisition, construction, renovation, remodeling and equipping of certain of the borrower's health facilities.

RATING SENSITIVITIES

The rating is exclusively tied to the short- and long-term rating that Fitch maintains on the bank providing the substitute LOC and will reflect all changes to that rating.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Rating Guidelines for Letter of Credit-Supported Bonds and Commercial Paper (pub. 21 May 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=866152

U.S. Municipal Structured Finance Criteria (pub. 23 Feb 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=862222

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=987272

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=987272

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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