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23 Dec 2010
RATING ACTION IMPACTS $200 MILLION OF RATED DEBT OUTSTANDING
Harris County Cult. Educ. Fac. Fin.Corp.,TX
NEW YORK, Dec 23, 2010 -- Moody's Investors Service has placed the YMCA of Greater Houston's
Baa2 underlying rating on watchlist for possible downgrade. The rating action
impacts the underlying rating on $200 million of Revenue Bonds, Series 2008A-E
issued through the Harris County Cultural Education Facilities Finance
Corporation. The bonds are variable rate demand bonds supported by letters of
credit from five different banks, as described in the RATED DEBT section, below.
We expect to conclude our next review of the rating within a 90-day
timeframe. For more detail on the YMCA of Greater Houston's credit
profile, please refer to our most recent report published on April 15, 2010.
The rating action reflects the downgrade of several of the banks providing the
letters of credit supporting the bonds, including the recent downgrade of Allied
Irish Bank, and concerns about the YMCA's thin levels of unrestricted cash and
investments relative to the amount of variable-rate debt which could be
Series 2008A: Baa2 underlying rating on watchlist for downgrade; Aa1/VMIG1 based
on a letter of credit provided by JPMorgan Chase Bank, N.A. (expires June 24,
Series 2008B: Baa2 underlying rating on watchlist for downgrade; Baa1 (on
watchlist for possible downgrade)/VMIG3 based on a letter of credit provided by
Allied Irish Bank (expires June 24, 2011)
Series 2008C: Baa2 underlying rating on watchlist for downgrade; Aa3/VMIG1 based
on a letter of credit provided by Bank of America, N.A. (expires June 24, 2011)
Series 2008D: Baa2 underlying rating on watchlist for downgrade; A2/VMIG2 based
on a letter of credit provided by Compass Bank (expires June 24, 2011)
Series 2008E: Baa2 underlying rating on watchlist for downgrade; Baa1 (on
watchlist for possible downgrade)/S.G. based on a letter of credit provided by
Regions Bank (expires June 24, 2011)
YMCA of the Greater Houston Area: Mike Emmons, Senior Vice President and Chief
Financial Officer, 713-758-9115; Wayne Brewer, Executive Vice President/COO,
713-758-9130, Samantha Buckner, VP/Assistant Treasurer, 713-758-9113
The rating on the YMCA of Greater Houston's debt was assigned by
evaluating factors believed to be relevant to the credit profile of the YMCA of
Greater Houston such as i) the business risk and competitive position of the
issuer versus others within its industry or sector, ii) the capital
structure and financial risk of the issuer, iii) the projected performance of
the issuer over the near to intermediate term, iv) the issuer's history of
achieving consistent operating performance and meeting budget or financial plan
goals, v) the nature of the dedicated revenue stream pledged to the bonds, vi)
the debt service coverage provided by such revenue stream, vii) the legal
structure that documents the revenue stream and the source of payment, and viii)
the issuer's management and governance structure related to payment.
Information sources used to prepare the credit rating are the following: parties
involved in the ratings, public information.
Moody's Investors Service considers the quality of information available on the
credit satisfactory for the purposes of assigning 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.
Kimberly S. Tuby
Public Finance Group
Moody's Investors Service
Public Finance Group
Moody's Investors Service
Journalists: (212) 553-0376
Research Clients: (212) 553-1653
MOODY'S PLACES YMCA OF GREATER HOUSTON'S Baa2 UNDERLYING RATING ON SERIES 2008A-E BONDS ON WATCHLIST FOR POSSIBLE DOWNGRADE
Moody's Investors Service
250 Greenwich Street
New York, NY 10007
No Related Data.
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