On the effective date of March 12, 2014, Fitch Ratings will confirm the
'A+/F1', Stable Outlook, rating for the city of Middletown, Ohio (Atrium
Medical Center Obligated Group) hospital facilities revenue bonds $56
million ($48,125,000 currently outstanding) series 2008A and $55 million
series 2008B ($47,825,000 currently outstanding).
The rating action is in connection with the substitution of the
irrevocable direct-pay letters of credit (LOCs) previously provided by
JPMorgan Chase Bank, N.A. (currently rated 'A+/F1', Stable Outlook by
Fitch) with two separate substitute LOCs issued by PNC Bank, National
Association (PNC, currently rated 'A+/F1', Stable Outlook) and the March
12, 2014, mandatory tender and remarketing of the bonds.
KEY RATING DRIVERS:
The ratings are based on the support provided by the substitute LOCs
issued by PNC.
Pursuant to the substitute LOCs, the bank is obligated to make regularly
scheduled payments of principal of and interest on the bonds in addition
to payments due upon maturity and redemption, as well as purchase price
for tendered bonds. The rating will expire upon the earliest of: (a)
March 12, 2019, the initial stated expiration date of the substitute
LOCs, unless such date is extended; (b) conversion to a mode other than
the daily or weekly rate; (c) any prior termination of the substitute
LOCs; and (d) defeasance of the bonds. The PNC substitute LOCs provide
full and sufficient coverage of principal plus an amount equal to 34
days of interest at a maximum rate of 15% based on a year of 365 days
and purchase price for tendered bonds, while in the daily and weekly
rate mode. Barclays will replace Merrill Lynch as remarketing agent for
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.
Applicable criteria available on Fitch's website at www.fitchratings.com:
'U.S. Municipal Structured Finance Criteria", Feb. 24, 2014;
'Rating Guidelines for Letter of Credit-Supported Bonds", June 14, 2013.
Applicable Criteria and Related Research:
Rating Guidelines for Letter of Credit-Supported Bonds
U.S. Municipal Structured Finance Criteria
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING
THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.
AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE '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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE
RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR
RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY
CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH
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