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 Aa2/VMIG 1 LETTER OF CREDIT-BACKED RATING TO WASHINGTON HEALTH CARE FACILITIES AUTHORITY REVENUE BONDS (SWEDISH HEALTH SERVICES), SERIES 2011B AND 2011C

15 Feb 2011

$175 MILLION OF DEBT AFFECTED. RATING IS BASED ON THE JOINT SUPPORT FROM SWEDISH HEALTH SERVICES AND CITIBANK, NATIONAL ASSOCIATION, AS LETTER OF CREDIT PROVIDER.

Washington Health Care Facilities Auth
Fully Supported
WA

Moody's Rating

ISSUE

RATING

Ser. 2011B

Aa2/VMIG 1

  Sale Amount

$100,000,000

  Expected Sale Date

03/02/11

  Rating Description

JDA

 

Ser. 2011C

Aa2/VMIG 1

  Sale Amount

$75,000,000

  Expected Sale Date

03/02/11

  Rating Description

JDA

 

Opinion

NEW YORK, Feb 15, 2011 -- Moody's Investors Service has assigned a rating of Aa2/VMIG 1 to the Washington Health Care Facilities Authority Revenue Bonds (Swedish Health Services), Series 2011B and 2011C (collectively, the Bonds). The proceeds are to be used to: (i) currently refund certain outstanding bonds previously issued by the Washington Health Care Facilities Authority; (ii) finance a portion of certain capital expenditures incurred for the remodeling, constructing, acquiring and equipping of Swedish Health Services' inpatient, outpatient, and administrative facilities; and, (iii) pay certain costs of issuing the Bonds.

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 Citibank, National Association (the Bank) as provider of the letters of credit; the underlying rating assigned to the Bonds; and the structure and legal protections of the transaction which ensures timely debt service payments to investors. Each Series is supported by a separate, substantially identical letter of credit. 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. Citibank, National Association is currently rated A1 for long-term other senior obligations (OSO) and Prime-1 for short-term OSO. Moody's currently maintains an underlying rating of A2 on the Bonds.

Since a loss to investors would occur only if both the Bank providing the letters of credit and Swedish Health Services (the Borrower) default in payment, Moody's has assigned ratings 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 the Borrower. Moody's has determined that there is a low level of default dependence between the Bank and the Borrower. As a result, the joint probability of default for the Bank and the Borrower results in a credit risk consistent with a JDA rating of Aa2

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) Wednesday of each month. The Bonds may be converted, in whole, to a daily or long-term interest rate mode. The letter of credit will provide sufficient coverage for the Bonds while they bear interest in the weekly mode only. Moody's JDA and short-term ratings will not extend to the Bonds while they bear interest in the daily or long-term interest 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 applicable letter of credit, in accordance with its terms, in order to receive sufficient funds by 1:00 p.m., Eastern Time (ET), on any payment date in order to make any payments of principal and/or accrued interest due on any such interest payment date, stated maturity date, or redemption date of the Bonds. In the event the Bank fails to deposit such moneys by the time required, the trustee shall utilize funds of the Borrower to make such payments to bondholders. The trustee is instructed to draw under the letter of credit, on each purchase date, for purchase price, 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 Letters Of Credit

The letters of credit provided by the Bank are sized for the full principal amount plus fifty-two (52) days of interest at a rate of 12%, the maximum rate on the Bonds. The letters of credit provide sufficient coverage for the Bonds while they bear interest in the weekly rate mode 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 Letters Of Credit

Conforming draws for principal or interest received by the Bank at or before 2:00 p.m., ET, on a business day will be honored by 1:00 p.m., ET, on the next business day. Conforming draws for purchase price received by the Bank at or before 11:30 a.m., ET, on a business day will be honored by 2:30 p.m., ET, on the same business day.

Reinstatement of Interest Draws

Draws made under the letter of credit for interest shall be automatically reinstated at the opening of business on the sixth (6th) calendar day following the date on which the Bank honor's an interest drawing unless the trustee receives written notice prior to close of business on the fifth (5th) calendar day from the Bank that an event of default has occurred and directing either a mandatory tender or an acceleration of the Bonds. If directed to cause a mandatory tender of the Bonds, the trustee shall cause a mandatory tender of the Bonds on the second (2nd) day (or next succeeding business day) following receipt of such notice by the trustee from the Bank that the interest portion of the letter of credit will not be reinstated. If directed to accelerate the Bonds, the trustee shall immediately declare the Bonds due and payable. Interest will cease to accrue upon declaration of acceleration.

Reimbursement Agreement Defaults

Pursuant to the Indenture, the Bank may, at its option, deliver written notice to the trustee stating that an event of default under the reimbursement agreement has occurred and direct the trustee to cause either a mandatory tender or an acceleration of the Bonds. If directed to cause a mandatory tender of the Bonds, the trustee shall cause a mandatory tender of the Bonds on the tenth (10th) calendar day (or next preceding business day) following the receipt by the trustee of such notice of an event of default under the reimbursement agreement. If directed to accelerate the Bonds, the trustee shall immediately declare the Bonds due and payable. Interest will cease to accrue upon declaration of acceleration.

Expiration / Termination of the Letters Of Credit

Each letter of credit expires at the close of business on the earliest of (i) February 28, 2014 (the stated expiration date); (ii) the date the Bank receives notice from the trustee stating either that (a) all outstanding bonds have been paid or deemed to have been paid in full, or (b) a substitute letter of credit has been accepted; (iii) the earlier of (a) the first business day following the conversion of bonds to an interest rate mode other than Weekly, or (b) the date which the Bank honors a draw on the letter of credit in connection with such conversion date; (iv) the earlier of (a) the eleventh (11th) business day following the trustee receipt of notice from the Bank of an event of default under the reimbursement agreement directing either acceleration or a mandatory tender of the Bonds, or (b) the date, following receipt of such notice, that the trustee draws upon the letter of credit in the amount required and the Bank honors such drawing; or, (v) the earlier of (a) the date thirteen (13) calendar months following trustee's receipt from the Bank that a Material Adverse Change (with respect to the Borrower) occurred under the reimbursement agreement, or (b) the date, following receipt of such notice, that the trustee draws upon the letter of credit in the amount required and the Bank honors such drawing. Termination provision (v) results in a mandatory tender five (5) business days prior to such termination date.

Substitution

Substitution of the letters of credit are permitted. The Bonds are subject to mandatory tender on the substitution date. The trustee shall not surrender the existing letter of credit for cancellation until all required draws have been honored.

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 and remarketing agent by 4:00 p.m. ET at least seven (7) days prior to the purchase date. Bonds so tendered will be purchased from their bondholders on the tender date at a purchase price of par plus interest accrued to the tender date.

Mandatory Purchases

The Bonds are subject to mandatory tender on (i) each interest rate mode conversion date, (ii) the business day that is immediately prior to the fifth (5th) calendar day preceding any expiration, termination, reduction, or modification of the letter of credit, (iii) on the substitution date of the letter of credit, (iv) on the tenth (10th) calendar day (or next preceding business day) following trustee's receipt of notice from the Bank of an event of default under the reimbursement agreement, or (v) on the second (2nd) calendar day (or next succeeding business day) following trustee's receipt of notice from the Bank that the interest portion of the letter of credit will not be reinstated.

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 long-term OSO rating on the Bank was upgraded or the long-term underlying rating was 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 long-term OSO rating on the Bank or the long-term underlying rating was downgraded or if the default dependence increased.

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

KEY CONTACTS:

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

Underwriter/Remarketing Agent: Citigroup Global Markets, 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 September 2010 and Moody's Rating Methodology for Letter of Credit Supported Transactions published in August 2005.

REGULATORY DISCLOSURES

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

Moody's Investors Service considers the quality of information available on the issuer or obligation satisfactory for the purposes of maintaining a credit 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

Ian Rogow
Analyst
Public Finance Group
Moody's Investors Service

Robert Azrin
Senior Credit Officer
Public Finance Group
Moody's Investors Service

Contacts

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


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

MOODY'S ASSIGNS Aa2/VMIG 1 LETTER OF CREDIT-BACKED RATING TO WASHINGTON HEALTH CARE FACILITIES AUTHORITY REVENUE BONDS (SWEDISH HEALTH SERVICES), SERIES 2011B AND 2011C
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