TEXT-Fitch to raise Bon Secours Health System revs to 'AA-/F1+'
Jan 7 - 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 Rating Guidelines for Letter of Credit-Supported Bonds
DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.