Fitch Rates Wisconsin Health & Ed Fac Auth (Aurora Health Care, Inc.) Series 2012B-D VRDBs 'AA-/F1+'

NEW YORK--(BUSINESS WIRE)--Fitch Ratings assigns a rating of 'AA-/F1+', Stable Outlook, to each series of the $154,650,000 Wisconsin Health and Educational Facilities Authority variable rate revenue bonds, series 2012 (Aurora Health Care, Inc.), consisting of: $44,000,000 series 2012B bonds; $44,000,000 series 2012C bonds, and $66,650,000 series 2012D bonds.

The ratings are based on the support of three irrevocable direct-pay letters of credit (LOCs), each issued by the Bank of Montreal, acting through its Chicago Branch (rated 'AA-/F1+', Stable Outlook) and securing a respective series of the Bonds. For information about the underlying rating on Aurora Health System, Inc.'s revenue bonds, see Fitch's ratings report dated Jan. 11, 2012 and available at 'www.fitchratings.com'.

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 on each series of bonds will expire upon the earliest of: (a) Feb. 7, 2015, the initial stated expiration date of the respective LOCs, unless such dates are extended; (b) conversion of the bonds to an interest rate mode other than the daily or weekly rate; (c) any prior termination of the respective LOCs; and (d) defeasance of the bonds. The LOCs provide 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, while in the weekly and daily rate mode. The remarketing agent for the bonds is BMO Capital Markets GKST Inc. The bonds are expected to be delivered on or about Feb. 7, 2012.

The series 2012B and series 2012C bonds will initially bear interest at the daily rate and the series 2012D bonds will initially bear interest at the weekly rate. Thereafter, each series of bonds may be converted to a daily, weekly, unit pricing, R-FLOATs, term, auction, indexed, stepped coupon or fixed rate mode. While bonds bear interest in the daily and weekly rate modes, interest payments are on the first business day of each month, commencing March 1, 2012. The trustee is obligated to make timely draws on the respective LOCs to pay principal, interest, and purchase price. Funds drawn under the LOCs are invested in accordance with rating guidelines and mature when needed, and are free from any lien prior to that of the bondholders.

Holders may tender their bonds in the daily or weekly rate modes on any business day, provided the trustee and tender agent are given the requisite prior notice of the purchase. Each series of the bonds are subject to mandatory tender: (1) upon conversion of the interest rate; (2) upon expiration, substitution or termination of the respective LOCs; (3) following receipt of written notice from the bank of an event of default under the respective reimbursement agreement, and (4) following receipt of notice from the bank that the interest component of the respective LOCs will not be reinstated directing such mandatory tender. Optional and mandatory redemption provisions also apply to the bonds. There are no provisions for the issuance of additional bonds.

Bond proceeds will be used to refund the authority's variable rate revenue bonds (Aurora Health Care, Inc.) series 2006A-C and to pay or reimburse Aurora Health Care, Inc. and certain benefited affiliates for the payment of, costs associated with the acquisition, construction, remodeling, renovation, and equipping of certain health facilities.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'U.S. Municipal Structured Finance Rating Criteria', April 25, 2011;

--'Rating Guidelines for Letter of Credit-Supported Bonds', July 26, 2011.

Applicable Criteria and Related Research:

U.S. Municipal Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=624129

Rating Guidelines for Letter of Credit-Supported Bonds

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647311

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