January 7, 2013 / 9:16 PM / 5 years ago

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

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