Fitch Affirms North Mississippi Health Services (MS) S-T Rating at 'F1+'

NEW YORK--(BUSINESS WIRE)-- In the course of routine surveillance, Fitch Ratings has affirmed its short-term 'F1+' rating on the following Mississippi Hospital Equipment and Facilities Authority bonds that are issued on behalf of North Mississippi Health Services (NMHS) and supported by self-liquidity:

--$29,800,000 revenue bonds, 2003 series 1;

--$29,175,000 revenue bonds, 2003 series 2;

--$40,000,000 variable-rate revenue bonds, 2001 series 1;

--$21,985,000 variable-rate revenue bonds, 1997 series 1.

RATING RATIONALE:

--The 'F1+' rating is based on the sufficiency of NMHS's cash and liquid investments to fund the purchase price on each mandatory tender date for the bonds listed above, as well as a written procedures letter that details accessing these funds in the event of a tender.

--As of May 31, 2011, NMHS had $330 million of eligible cash and liquid investments that it designates available within a week for purposes of self-liquidity in order to cover the $121 million of debt supported by self-liquidity. This is in excess of 125%, which is the 'F1+' threshold under Fitch's rating criteria for bonds supported by self liquidity.

NMHS's long-term rating is 'AA', with a Stable Outlook. NMHS includes six owned hospitals and one managed hospital, with its flagship, North Mississippi Medical Center located in Tupelo, the largest hospital in Mississippi with 586 staffed beds. Tupelo is located roughly 100 miles southeast of Memphis, TN. NMHS covenants to provide annual and quarterly financial information to bondholders. Continuing disclosure to Fitch has been timely and accurate.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Revenue-Supported Rating Criteria' (Oct. 8, 2010);

--'Nonprofit Hospitals and Health Systems Rating Criteria' (Dec. 29, 2009);

--'Criteria for Assigning Short-Term Ratings Based on Internal Liquidity' (June 20, 2011).

Applicable Criteria and Related Research:

Revenue-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=637130

Nonprofit Hospitals and Health Systems Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=493186

Criteria for Assigning Short-Term Ratings Based on Internal Liquidity

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=637129

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE '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.



CONTACT:

Fitch Ratings
Cindy Stoller, +1-212-908-0526
Media Relations, New York
[email protected]
or
Primary Analyst:
Gary Sokolow, +1-212-908-9186
Director
Fitch, Inc.
One State Street Plaza
New York, NY 10014
or
Secondary Analyst:
Michael Borgani, +1-415-732-5620
Director
or
Committee Chairperson:
James LeBuhn, +1-312-368-2059
Senior Director

KEYWORDS:   United States  North America  Mississippi  New York

INDUSTRY KEYWORDS:   Health  Hospitals  Professional Services  Finance

MEDIA:

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