Fitch to Confirm S-T Ratings on Montgomery Co., OH Revs (Miami Valley Hospital) 2011B&C at 'F1'

NEW YORK--()--On the effective date of Feb. 27, 2014, Fitch Ratings will confirm the short-term ratings assigned to the $42,500,000 County of Montgomery, Ohio Revenue Bonds, Series 2011B (Miami Valley Hospital) and $42,500,000 Series 2011C (the bonds) at 'F1'. The short-term rating action is in connection with the substitution of the liquidity support provided by JPMorgan Chase Bank, N.A. (rated 'A+/F1'; Stable Outlook by Fitch) in the form of two separate Standby Bond Purchase Agreements (SBPAs), with two separate substitute SBPAs to be issued by Barclays Bank PLC (Barclays, rated 'A/F1; Stable Outlook).

KEY RATING DRIVERS

On the effective date, the short-term 'F1' rating will be based on the liquidity support provided by Barclays, in the form of two separate substitute SBPAs. The long-term 'AA-'; Stable Outlook rating continues to be based on the long-term rating assigned by Fitch to the revenue bonds of MedAmerica Health Systems Corporation which is the parent of Miami Valley Hospital.

For more information on the long-term rating, see the press release dated April 26, 2013 entitled 'Fitch Affirms MedAmerica Revs at 'AA-'; Outlook Stable' available on Fitch's website at www.fitchratings.com.

The substitute SBPAs provide for the payment of the principal component of purchase price plus an amount equal to 34 days of interest calculated at a maximum rate of 12%, based on a year of 365 days for tendered bonds during the daily and weekly rate modes in the event that the proceeds of a remarketing of the bonds are insufficient to pay the purchase price following an optional or mandatory tender. The substitute SBPAs will expire on the earliest of: Feb. 26, 2016, the expiration date of the 2011B Barclays SBPA, unless such date is extended and for the series 2011C bonds, Feb. 27, 2017, the expiration date of the 2011C Barclays SBPA, unless such date is extended; conversion to a mode other than a daily, or weekly rate mode; the occurrence of certain other events of default which result in a mandatory tender; or other termination events related to the credit of the MedAmerica Health System Corporation which result in an automatic and immediate termination. The short-term 'F1' rating will expire on the expiration or prior termination of the SBPA.

The remarketing agent for the series 2011B bonds is Barclays Capital Inc. and Wells Fargo Bank, National Association for the 2011C bonds.

RATING SENSITIVITIES

The short-term ratings reflect the short-term rating that Fitch maintains on the bank providing liquidity support, and will be adjusted upward or downward in conjunction with the short-term rating of the bank and, in some cases, the long-term rating of the bonds.

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 Variable-Rate Demand Obligations and Commercial Paper Issued with External Liquidity Support' (Jan. 27, 2014).

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 Variable-Rate Demand Obligations and Commercial Paper Issued with External Liquidity Support

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=730736

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
Primary Analyst
Richard Park
Director
+1-212-908-0289
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Trudy Zibit
Managing Director
+1-212-908-0689
or
Committee Chairperson
Joseph Staffa
Senior Director
+1-212-908-0829
or
Media Relations:
Elizabeth Fogerty, +1-212-908-0526 (New York)
elizabeth.fogerty@fitchratings.com

Sharing

Contacts

Fitch Ratings
Primary Analyst
Richard Park
Director
+1-212-908-0289
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Trudy Zibit
Managing Director
+1-212-908-0689
or
Committee Chairperson
Joseph Staffa
Senior Director
+1-212-908-0829
or
Media Relations:
Elizabeth Fogerty, +1-212-908-0526 (New York)
elizabeth.fogerty@fitchratings.com