Fitch Rtes $46.77MM Florence County, SC, Hosp Revs (McLeod Reg'l Med Center) Ser 2010B 'AA-/F1+'

NEW YORK--(BUSINESS WIRE)--Fitch Ratings assigns a rating of 'AA-/F1+' to the $46,770,000, Florence County, South Carolina, hospital revenue bonds (McLeod Regional Medical Center Project), series 2010B. The rating is based on the support provided by an irrevocable direct-pay letter of credit (LOC) issued by Wells Fargo Bank, National Association (rated 'AA-/F1+', with a Stable Outlook by Fitch).

The bank is obligated to make payments of principal of and interest on the bonds upon maturity, acceleration and redemption, as well as purchase price for tendered bonds. The ratings will expire upon the earliest of: (a) Aug. 5, 2013, the initial stated expiration date of the LOC, unless such date is extended; (b) any prior termination of the LOC; and (c) defeasance of the bonds. The LOC provides full and sufficient coverage of principal plus an amount equal to 46 days of interest at a maximum rate of 12% based on a year of 365 days and purchase price for tendered bonds. The Remarketing Agent for the bonds is Wells Fargo Securities. The bonds are expected to be delivered on or about Aug. 5, 2010.

The bonds initially bear interest at a weekly rate, but may be converted to a daily, commercial paper, index floating, LIBOR index or long-term rate. While bonds bear interest in the weekly rate mode, interest payments are on the first business day of each month, commencing Sept. 1, 2010. The trustee is obligated to make timely draws on the LOC to pay principal, interest, and purchase price. Funds drawn under the LOC are held uninvested, and are free from any lien prior to that of the bondholders. Holders may tender their bonds in the daily or weekly rate mode on any business day, provided the trustee is given the requisite prior notice of the purchase. The bonds are subject to mandatory tender: (1) upon conversion of the interest rate; (2) upon expiration, substitution or termination of the LOC; (3) following receipt of written notice from the bank of an event of default under the reimbursement agreement; (4) the day following any commercial paper rate period, LIBOR rate period or floating index rate period; (5) on any business day designated by McLeod Regional Medical Center (McLeod) with the consent of the bank and the remarketing agent when the bonds bear interest in the daily or weekly rate modes. The bonds may be accelerated following the trustee's receipt of notice of non-reinstatement of the LOC interest component. Optional redemption provisions also apply to the bonds. There are no provisions for the issuance of additional bonds under the trust agreement authorizing the bonds.

Bond proceeds will be used to acquire, construct and equip certain hospital facilities of McLeod and to refund outstanding series 2004B bonds.

Applicable criteria available on Fitch's website at www.fitchratings.com:

-- 'U.S. Municipal Structured Finance Rating Criteria', Dec. 17, 2009;

-- 'Rating Guidelines for Letter of Credit-Supported Bonds', April 29, 2009.

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

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