Fitch to Confirm Nemours Foundation 2009B's L-T Rating at 'AA+' & Upgrade S-T to 'F1+'

NEW YORK--()--On the effective date of Dec. 20, 2013, Fitch will confirm the 'AA+'; Stable Outlook, long-term rating, and upgrade the short-term rating to 'F1+' from 'F1', for Orange County Health Facilities Authority Revenue Bonds (The Nemours Foundation Project) $100 million ($96,990,000 currently outstanding) series 2009B.

The rating actions are in connection with the (i) Dec. 19, 2013, mandatory tender and remarketing of the bonds; and the (ii) substitution of the irrevocable direct-pay letter of credit (LOC) provided by The Northern Trust Company ('AA-/F1+'; Stable Outlook), for the existing LOC provided by Bank of America ('A/F1'; Stable Outlook) for the bonds.

KEY RATING DRIVERS

The long-term rating will be based on the higher of the underlying long-term rating assigned to the bonds by Fitch (currently rated 'AA+'; Stable Outlook), and the long-term rating assigned by Fitch to the bank providing the LOC securing the bonds. The short-term rating is based solely on the LOC. For information about the underlying credit rating see press release dated May 14, 2013 available at 'www.fitchratings.com'.

Pursuant to the substitute LOC, the bank is obligated to make regularly scheduled payments of principal of and interest on the bonds in addition to payments due upon maturity and redemption, as well as purchase price for tendered bonds. Additionally, the bond obligor is in the flow of funds to make timely payments of principal and interest due upon maturity and redemption. The credit-enhanced rating will expire upon the earliest of: (a) Dec. 20, 2016, the initial stated expiration date of the substitute LOC, unless such date is extended; (b) conversion to a mode other than the weekly rate and daily rate; (c) any prior termination of the substitute LOC; and (d) defeasance of the bonds. The LOC provides full and sufficient coverage of principal plus an amount equal to 35 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 modes.

RATING SENSITIVITIES

The long-term rating is tied to the Fitch long-term rating assigned to the bond obligor and the long-term rating that Fitch maintains on the bank providing the substitute LOC. Changes to one or both of these ratings may affect the long-term rating assigned to the bonds.

The short-term rating is exclusively tied to the short-term rating that Fitch maintains on the bank providing the substitute LOC and will reflect all changes to that rating.

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

Applicable Criteria and Related Research:

--'U.S. Municipal Structured Finance Criteria' (Feb. 27, 2013);

--'Rating Guidelines for Letter of Credit-Supported Bonds' (June 14, 2013).

Applicable Criteria and Related Research:

U.S. Municipal Structured Finance Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=701570

Rating Guidelines for Letter of Credit-Supported Bonds

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=710476

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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings, Inc.
Primary Analyst
Joseph Staffa, +1-212-908-0829
Senior Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Mario Civico, +1-212-908-0796
Senior Director
or
Committee Chairperson
Trudy Zibit, +1-212-908-0689
Managing Director
or
Media Relations
Elizabeth Fogerty, +1-212-908-0526
elizabeth.fogerty@fitchratings.com

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Contacts

Fitch Ratings, Inc.
Primary Analyst
Joseph Staffa, +1-212-908-0829
Senior Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Mario Civico, +1-212-908-0796
Senior Director
or
Committee Chairperson
Trudy Zibit, +1-212-908-0689
Managing Director
or
Media Relations
Elizabeth Fogerty, +1-212-908-0526
elizabeth.fogerty@fitchratings.com