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 THE WISCONSIN HEALTH AND EDUCATIONAL FACILITIES AUTHORITY VARIABLE RATE REVENUE BONDS (GUNDERSEN LUTHERAN), SERIES 2011B

16 Sep 2011

$40 MILLION OF DEBT AFFECTED. RATING IS BASED ON THE JOINT SUPPORT FROM JPMORGAN CHASE BANK, N.A. AS LETTER OF CREDIT PROVIDER AND GUNDERSEN LUTHERAN

Fully Supported
WI

Moody's Rating

ISSUE

RATING

Ser. 2011B

Aa1/VMIG 1

  Sale Amount

$40,000,000

  Expected Sale Date

09/29/11

  Rating Description

JDA LOC

 

Opinion

NEW YORK, Sep 16, 2011 -- Moody's Investors Service has assigned a rating of Aa1/VMIG 1 to the Wisconsin Health and Educational Facilities Authority Variable Rate Revenue Bonds (Gundersen Lutheran), Series 2011B (the "Bonds"). The proceeds of the Bonds will be used to (i) finance a portion of the costs of a renewal project for the La Crosse campus of the Gundersen Lutheran Health System ("Gundersen"), (ii) pay related expenses in issuing the Bonds, and (iii) pay fees for the letter of credit.

SUMMARY RATINGS RATIONALE

The long term rating is based on a joint default analysis ("JDA") which reflects Moody's approach to rating jointly supported transactions. The JDA rating is based upon the long-term rating of JPMorgan Chase Bank, National Association (the "Bank") as provider of the letter of credit; the underlying rating assigned to the Bonds; and the structure and legal protections of the transaction which ensure timely debt service payments to investors. The timely payment of purchase price is reflected in the short-term rating of the Bonds. The short term rating is based on the short term rating of the Bank. Moody's currently rates JPMorgan Chase Bank, N.A. long-term and short-term other senior obligations ("OSO") Aa1/P-1, respectively. Moody's currently maintains an underlying rating of A1 on the Bonds.

Since a loss to investors would occur only if both the Bank and Gundersen default in payment, Moody's has assigned the long-term rating based upon the joint probability of default by both parties. In determining the joint probability of default, Moody's considers the level of default dependence between the Bank and Gundersen. Moody's has determined that there is a low level of default dependence between the Bank and Gundersen. As a result, the joint probability of default for the Bank and Gundersen results in a credit risk consistent with a JDA rating of Aa1 for the Bonds.

DETAILED CREDIT DISCUSSION

Interest Rate Modes And Payment

The Bonds will initially bear interest in a weekly rate mode with interest to be paid on the first (1st) business day of each month, commencing October 3, 2011. The Bonds may be converted, in whole, to a daily, R-FLOATs, special R-FLOATs, unit pricing, indexed, stepped coupon, term, auction, fixed, or index floating rate mode. The letter of credit will provide sufficient coverage for the Bonds, however, while they bear interest in the weekly or daily rate modes only. Moody's JDA and short-term ratings apply only to Bonds bearing interest in the weekly or daily rate modes.

Additional Bonds

The Indenture does not permit the issuance of additional Bonds.

Flow of Funds

The trustee is instructed to draw under the letter of credit in accordance with its terms thereof at the times and in amounts required to pay when due the principal and interest on the Bonds. In the event that the Bank fails to honor any principal or interest drawing, and on such payment date there are insufficient funds on deposit with the trustee to make such payment, the trustee shall immediately notify Gundersen of such deficiency, and upon such notice from the trustee, Gundersen shall provide immediately available funds to the trustee in an amount necessary for the trustee to make timely payments of principal and/or interest to the holders of the Bonds. The trustee shall also draw for purchase price under the letter of credit, in accordance with its terms thereof by such times and in such manners as to receive sufficient funds by 2:30 p.m. (New York City time) to pay the purchase price of Bonds tendered to the extent remarketing proceeds received 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.

Direct Pay Letter Of Credit

The letter of credit provided by the Bank is sized for the full principal amount plus thirty-four (34) days of interest at a rate of 15%, the maximum rate on the Bonds. The letter of credit provides sufficient coverage for the Bonds while they bear interest in the weekly and daily rate modes only. The letter of credit is governed by and construed in accordance with the International Standby Practices 1998, International Chamber of Commerce Publication No. 590 (ISP98).

Draws On the Letter Of Credit

Conforming draws for principal or interest received by the Bank at or before 3:00 p.m. on a business day will be honored by 10:00 a.m. on the next business day. Conforming draws for purchase price received by the Bank at or before 12:15 p.m. on a business day will be honored by 2:15 p.m. on the same business day. (All times refer to local time in effect in New York, New York).

Reinstatement of Interest Draws

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

Reimbursement Agreement Defaults

In the event of a default under the reimbursement agreement, the Bank may, at its option, deliver written notice to the trustee stating that such event of default under the reimbursement agreement has occurred and direct the trustee to either accelerate or cause a mandatory tender of the Bonds. With direction to cause a mandatory tender of the Bonds, the trustee shall do so not later than two business days following the trustee's receipt of notice from the Bank of an event of default under the reimbursement agreement directing the trustee to cause a mandatory tender. With direction to accelerate the Bonds, the trustee shall declare the entire principal amount of the Bonds then outstanding and the interest accrued thereon to become and be immediately due and payable. Interest shall cease to accrue upon such declaration. The trustee is instructed to draw on the letter of credit to pay the principal and interest on the Bonds no later than one business day after the date the Bonds are declared due and payable. The letter of credit will terminate fifteen calendar days following the trustee's receipt of notice from the Bank of an event of default under the reimbursement agreement directing either a mandatory tender or an acceleration of the Bonds.

Expiration / Termination of the Letter Of Credit

The letter of credit expires at the close of business on the earliest to occur of (i) September 29, 2016, the stated expiration date of the letter of credit; (ii) the earlier of (a) the date which is thirty-five calendar days following the conversion of the Bonds to an interest rate mode other than the daily or weekly rate mode, or (b) the date which the Bank honors a drawing under the letter of credit on or after the conversion date; (iii) the date which is fifteen calendar days following the Bank's receipt of notice from the trustee that (a) no Bonds remain outstanding, (b) all required drawings available under the letter of credit have been made and honored, or (c) a substitute letter of credit has been issued to replace the existing letter of credit; (iv) the date which an acceleration drawing is honored by the Bank; or, (v) the date which is fifteen calendar days following the trustee's receipt of notice from the Bank specifying the occurrence of an event of default under the reimbursement agreement directing the trustee to either accelerate or cause a mandatory tender of the Bonds.

Substitution

The Indenture permits the substitution of the letter of credit. The Bonds are subject to mandatory tender on the substitution date of the letter of credit. Draws for purchase price upon the substitution of the letter of credit will be made under the existing letter of credit. The trustee is instructed to surrender such letter of credit following the honoring of all required draws thereunder.

Optional Tenders

Bondholders may optionally tender their Bonds, while the Bonds are in the weekly rate mode, on any business day by providing written notice to the trustee, tender agent, and remarketing agent by 4:00 p.m. at least seven calendar days prior to the purchase date. Bondholders may also, at their option, tender their Bonds during the daily rate mode on any business day by providing written notice delivered to the trustee, tender agent, and remarketing agent by 10:00 a.m. on the purchase date. Bonds so tendered will be purchased from their bondholders on the tender date at a purchase price equal to the amount of principal and any interest accrued thereon to the tender date. (All times refer to local time in effect in New York, New York).

Mandatory Purchases

The Bonds are subject to mandatory tender: (i) on any interest rate mode conversion date; (ii) on the business day preceding the expiration date of the letter of credit; (iii) on the business day prior to the voluntary termination date of the letter of credit as determined by Gundersen; (iv) on the effective date of any substitute credit or liquidity facility; (v) not more than two business days following the trustee's receipt of notice from the Bank specifying (a) the occurrence of an event of default under the reimbursement agreement or (b) the non-reinstatement of the letter of credit and directing a mandatory tender of the Bonds; and, (vi) at the end of the period for Bonds bearing interest in the unit pricing, index floating, R-FLOATs, or the term rate mode.

Purchases in Lieu of Redemption

Bonds subject to redemption at the option of the borrower are subject to purchases in lieu of redemption by the borrower, at its option, on the date scheduled for redemption. Such Bonds shall be purchased at a price of par plus interest accrued to the purchase date, without premium. Such purchases shall be funded by the trustee using preference proof moneys held on deposit with the trustee, pursuant to the terms of the trust indenture.

Mandatory Redemption

The Bonds are subject to mandatory sinking fund redemptions.

WHAT COULD CHANGE THE RATING-UP

Long-Term: The long-term rating on the Bonds could be raised if the Bank's long-term OSO rating is upgraded or the underlying rating on the Bonds is upgraded.

Short-Term: Not Applicable.

WHAT COULD CHANGE THE RATING-DOWN

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

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: U.S. Bank, N.A.

Underwriter/Remarketing Agent: Merrill Lynch, Pierce, Fenner & Smith Inc.

The principal methodologies used in this rating were Applying Global Joint Default analysis to Letter of Credit Backed Transactions in the U.S. Public Finance Sector published in October 2010 and Moody's Methodology for Rating U.S. Public Finance Transactions Based on the Credit Substitution Approach published in August 2009. 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 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 Moody's Rating Symbols and Definitions on the Rating Process page on www.moodys.com for further information on the meaning of each rating category and the definition of default and recovery.

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

The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's 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 www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Analysts

Ian Rogow
Analyst
Public Finance Group
Moody's Investors Service

Michael J. Loughlin
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 THE WISCONSIN HEALTH AND EDUCATIONAL FACILITIES AUTHORITY VARIABLE RATE REVENUE BONDS (GUNDERSEN LUTHERAN), SERIES 2011B
No Related Data.
© 2020 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/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY'S (COLLECTIVELY, "PUBLICATIONS") MAY INCLUDE SUCH  CURRENT OPINIONS. MOODY'S INVESTORS SERVICE 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 INVESTORS SERVICE CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS ("ASSESSMENTS"), AND  OTHER 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. AND/OR ITS AFFILIATES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES  ITS 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, ASSESSMENTS, OTHER OPINIONS, AND 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, ASSESSMENTS, OTHER OPINIONS OR  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.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND 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 its 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, ASSESSMENT, 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 credit rating, agreed to pay to Moody's Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and Moody's investors Service also maintain policies and procedures to address the independence of Moody's Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody's Investors Service 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 credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit 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