Moodys.com
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
New Issue:

MOODY'S ASSIGNS Aa1/VMIG 1 LETTER OF CREDIT BACKED RATING TO COUNTY OF GRAND TRAVERSE HOSPITAL FINANCE AUTHORITY, VARIABLE RATE REVENUE REFUNDING BONDS (MUNSON HEALTHCARE OBLIGATED GROUP), SERIES 2011B

01 Aug 2011

$24.825 MILLION IN DEBT AFFECTED. LONG-TERM RATING BASED ON JOINT SUPPORT OF JPMORGAN CHASE BANK, N.A. AS LOC PROVIDER AND MUNSON HEALTHCARE.

Grand Traverse County Hosp. Fin. Auth., MI
Fully Supported
MI

Moody's Rating

ISSUE

RATING

Ser. 2011B

Aa1/VMIG 1

  Sale Amount

$24,825,000

  Expected Sale Date

08/10/11

  Rating Description

JDA LOC

 

Opinion

NEW YORK, Aug 1, 2011 -- Moody's Investors Service has assigned a rating of Aa1/VMIG 1 to the County of Grand Traverse Hospital Finance Authority, Variable Rate Revenue Refunding Bonds (Munson Healthcare Obligated Group), Series 2011B ("the Bonds"). The Bonds are supported by a direct-pay letter of credit provided by JPMorgan Chase Bank, National Association ("the Bank" or "the LOC provider").

SUMMARY RATINGS RATIONALE

The long-term rating reflects Moody's approach to rating jointly supported transactions and is based upon the letter of credit ("LOC") provided by JPMorgan Chase Bank, National Association; the underlying rating assigned to the Bonds; the structure and legal protections of the transaction, which ensure timely debt service payments to investors; and Moody's evaluation of the creditworthiness of the institution providing the letter of credit. The probability of timely payment of purchase price is reflected in the short-term rating of the Bonds which is based upon the short-term rating of the Bank as provider of the letter of credit. Moody's currently rates JPMorgan Chase Bank, N.A.'s, long-term other senior obligations ("OSO") Aa1 and short-term OSO P-1 . The long-term OSO rating of JPMorgan Chase Bank, N.A. is under review for downgrade. Moody's currently maintains a rating of A1 on the underlying bonds. For more information concerning the underlying rating assigned to the Bonds, please see the report dated July 15, 2011.

Since a loss to investors would occur only if both the Bank and Munson Healthcare (the Borrower) default in payment, Moody's has assigned the long-term portion of the rating based upon the joint probability of default by both parties. In determining the joint probability of default, Moody's considered the level of default dependence between the LOC provider and the Borrower and found it to be low. As a result, the joint probability of default for the Bank and the Borrower results in a credit risk consistent with a rating of Aa1.

DETAILED CREDIT DISCUSSION

Interest Rate Modes and Payment

The Series 2011B Bonds will initially bear interest at the weekly rate and pay interest on the first business day of the month, commencing in September of 2011. The Bonds may be converted, in whole to bear interest at the daily, adjustable or fixed rate modes and are subject to mandatory tender upon such conversion. Moody's joint support rating and short-term rating applies to the Bonds while they bear interest in the daily and weekly rate modes and will expire upon conversion of the Bonds to any other rate mode.

Additional Bonds

The trust indenture does not permit the issuance of additional bonds of this series.

Flow Of Funds

The trustee is instructed to draw under the letter of credit for principal or interest in accordance with the terms of such LOC to receive funds by 2 p.m. New York, New York time on the principal or interest payment date. In the event that the Bank wrongfully fails to honor any properly presented draw under the LOC, the trustee is instructed to utilize funds from the Borrower, if available, in order to make such payments to bondholders in a full and timely manner.

The trustee is instructed to draw under the letter of credit in accordance with its terms on the purchase date, for purchase price, to the extent remarketing proceeds are insufficient. Bonds which are purchased by the Bank due to a failed remarketing are held by the trustee and will not be released until the trustee has received written confirmation from the Bank stating that the letter of credit has been reinstated in the amount of the purchase price drawn for such Bonds.

Letters Of Credit

The letters of credit are sized for full principal plus 35 days of interest at the maximum rate on the Bonds (10%) and will provide coverage for Bonds while they bear interest in the daily and weekly rate modes.

Draws On The Letters Of Credit

Conforming draws for principal or interest presented to the Bank at or before 3:00 p.m., New York, New York time, on a business day, will be honored by the Bank at or before 10:00 a.m. on the next business day. Conforming draws for purchase price presented to the Bank at or before 11:00 a.m. New York, New York time, on a business day, will be honored by the Bank at or before 2:00 p.m. on the same business day.

Reinstatement Of Interest Draws

Draws made under the letter of credit for interest shall be automatically reinstated upon payment by the Bank of such interest drawing.

Reimbursement Agreement Defaults

In the event of a default under the reimbursement agreement the Bank may send written notice to the trustee stating that such default has occurred with direction to accelerate the Bonds. Upon receipt of such notice, the trustee shall accelerate the Bonds, declare such Bonds immediately due and payable and the trustee shall draw on the letter of credit. The LOC will expire 15 days following the trustee's receipt of such notice.

Expiration / Termination Of The Letter Of Credit

The LOC shall terminate upon the earliest to occur of: (1) August 10, 2016; (2) the earlier of (i) 15 days following the date on which all Bonds have been converted to a rate mode other than the daily or weekly rate or (ii) the date the Bank honors a drawing under the LOC on or after such conversion date; (3) the date the Bank receives notice from the trustee indicating (i) an alternate LOC has been issued, (ii) no Bonds remain outstanding, or (iii) all required drawings required to be made under the indenture and available under the LOC have been made and honored; (4) the date the acceleration drawing or final drawing has been honored; (5) fifteen days following the trustee's receipt of notice from the Bank indicating an event of default under the reimbursement agreement directing the trustee to accelerate the Bonds.

Substitution of Letter of Credit

The Bonds will be subject to mandatory tender on the effective date of a substitute LOC. Draws for purchase price upon the substitution of the LOC will be made under the existing LOC. The existing LOC will not expire until the trustee surrenders the existing LOC for cancellation. The trustee may not surrender the existing LOC until all draws have been honored by the Bank.

Optional Tenders

Bondholders may optionally tender their Bonds when they are in (i) the daily rate mode on any business day with written notice to the remarketing agent and trustee by 10:00 a.m., New York, New York time, on the purchase date and (ii) the weekly rate mode on any business day with seven days prior written notice to the remarketing agent and trustee.

Mandatory Purchases

The Bonds are subject to mandatory tender on the following dates: (1) the interest rate conversion date; (2) the effective date of a substitute LOC; (3) on the interest payment date prior to the expiration date of the LOC; or (4) in the adjustable rate mode, on the business day next succeeding the last day of the then current adjustable rate period.

Mandatory Redemptions

The Bonds are subject to mandatory sinking fund redemptions.

WHAT COULD CHANGE THE RATINGS-UP

Long-Term: The long-term rating on the Bonds could be raised if the Bank's long-term other senior obligations ("OSO") rating is upgraded or the underlying rating on the Bonds is upgraded above the rating of the Bank.

Short-Term: Not applicable.

WHAT COULD CHANGE THE RATINGS-DOWN

Long-Term: The long-term rating on the Bonds could be lowered if the Bank's long-term OSO rating is downgraded.

Short-Term: The short-term rating on the Bonds could be lowered if the Bank's short-term OSO rating is downgraded.

KEY CONTACTS

Trustee: The Bank of New York Mellon Trust Company, N.A.

Remarketing Agent and Underwriter: Merrill Lynch, Pierce, Fenner and Smith

PRINCIPAL METHODOLOGIES USED

The principal methodologies used in this rating were Moody's Methodology for rating U.S. Public Finance Transactions based on the Credit Substitution Approach published in August 2009 and Applying Global Joint Default Analysis to Letter of Credit Backed Transactions in the U.S. Public Finance Sector published in October 2010. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides relevant regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides relevant regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides relevant regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

Information sources used to prepare the rating are the following: parties involved in the ratings, and public information.

Moody's considers the quality of information available on the rated entity, obligation or credit satisfactory for the purposes of issuing a rating.

Moody's adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.

Please see ratings tab on the issuer/entity page on Moodys.com for the last rating action and the rating history.

The date on which some Credit Ratings were first released goes back to a time before Moody's Investors Service's Credit Ratings were fully digitized and accurate data may not be available. Consequently, Moody's Investors Service provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

Please see the Credit Policy page on Moodys.com for the methodologies used in determining ratings, further information on the meaning of each rating category and the definition of default and recovery.

Analysts

Robert Azrin
Analyst
Public Finance Group
Moody's Investors Service

Thomas Jacobs
Senior Credit Officer
Public Finance Group
Moody's Investors Service

Contacts

Journalists: (212) 553-0376
Research Clients: (212) 553-1653


Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
USA

MOODY'S ASSIGNS Aa1/VMIG 1 LETTER OF CREDIT BACKED RATING TO COUNTY OF GRAND TRAVERSE HOSPITAL FINANCE AUTHORITY, VARIABLE RATE REVENUE REFUNDING BONDS (MUNSON HEALTHCARE OBLIGATED GROUP), SERIES 2011B
No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​​​
Moodys.com