Fitch Ratings confirms the current long-term 'AAA' rating and assigns a
'F1+' to the $82,950,000 Sarasota County Public Hospital Board variable
rate hospital revenue bonds (Sarasota Memorial Hospital Project), series
2007A. The assignment of the short-term rating is in connection with the
conversion of the bonds from an auction-rate mode to a daily rate mode
and the addition of a standby bond purchase agreement (SBPA) with
Wachovia Bank, N.A. The long-term 'AAA' rating (currently on Rating
Watch Negative as of Feb. 5, 2008) continues to be based on the support
of a municipal bond insurance policy provided by MBIA Insurance
Corporation, which insures scheduled payments of principal and interest
on the bonds, which was effective as of the date of issuance of the
bonds. The insurance policy continues to be in effect until the bonds
mature on July 1, 2037.
The SBPA provides for the payment of the purchase price of tendered
bonds during the daily and weekly interest rate periods. The bonds will
initially bear interest in the daily rate mode, but may be converted to
a weekly, flexible, auction- or term- rate interest period. The SBPA is
sized to cover the principal portion of the purchase price and 35 days
of interest at the maximum rate of 10%, based on a year of 365 days. The
SBPA will expire on the initial stated expiration date of October 1,
2009, unless such date is extended, or upon the occurrence of other
events of termination, as specified in the SBPA. The short-term rating
on the bonds will expire upon conversion to any mode other than daily or
weekly, expiration or termination of the SBPA. Optional and mandatory
redemption provisions also apply to the bonds pursuant to the terms of
the documents.
The remarketing agent for the bonds continues to be Wachovia Bank, N.A..
The SBPA is expected to be delivered on March 26, 2008.
While the bonds bear interest in the daily rate mode, interest will be
payable on the first business day of each month. During the weekly rate
mode, holders may tender their bonds for purchase on any business day,
following the requisite prior notice to the trustee. The bonds are
subject to mandatory purchase on (i) any conversion date (except between
daily and weekly, (ii) on the liquidity facility or credit facility
substitution date, and (iii) on the business day prior to the expiration
or termination of the liquidity.
Fitch's rating definitions and the terms of use of such ratings are
available on the agency's public site, 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.
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