Fitch Places All Children's Hospital's (FL) Bonds on Rating Watch Negative

SAN FRANCISCO--()--Fitch Ratings has placed the following bonds, currently rated 'AA' by Fitch, issued by the St. Petersburg Health Facilities Authority on behalf of All Children's Hospital (ACH) on Rating Watch Negative:

--$63.6 million, series 2009A;

--$25.8 million, series 2007B;

--$18.7 million, series 2002.

SECURITY

The bonds are secured by a revenue pledge of the obligated group.

KEY RATING DRIVERS

RATING WATCH NEGATIVE: Fitch has placed ACH's bonds on Rating Watch Negative due to the expectation that ACH will join the Johns Hopkins Health System (JHHS) obligated group (OG; Fitch rates JHHS 'AA-'; Stable Outlook). JHHS became ACH's sole corporate parent in 2011 but retained separate obligated groups for the respective debt. ACH's series 2009 bonds are expected to become a JHHS OG obligation and the series 2002 and 2007B bonds will be redeemed.

RATING SENSITIVITIES

PART OF JHHS OBLIGATED GROUP: Fitch will lower ACH's rating to JHHS' rating once ACH becomes part of JHHS' OG, which is expected to occur by the end of 2014.

CREDIT PROFILE

All Children's Hospital is a 259-bed freestanding children's hospital located in St. Petersburg, Florida. ACH is part of JHHS based in Baltimore, Maryland. In fiscal 2014, ACH had total revenues of $424.8 million and JHHS had total revenues of approximately $5.1 billion. ACH covenants to provide annual audited financials and quarterly disclosure (includes balance sheet, income and cash flow statement, and utilization statistics) for the first three quarters within 45 days of quarter-end to the EMMA system.

For more information please see Fitch's press releases: "Fitch Affirms All Children's Hospital's (FL) Bonds at 'AA'; Outlook Stable", dated July 30, 2013, and "Fitch Rates Johns Hopkins Health System's (MD) $242MM series 2013C bonds 'AA-", dated Aug. 1, 2013, available at www.fitchratings.com.

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

Applicable Criteria and Related Research:

--'U.S. Nonprofit Hospitals and Health Systems Rating Criteria' (May 30, 2014).

For information on Build America Bonds, visit 'www.fitchratings.com/BABs'.

Applicable Criteria and Related Research:

U.S. Nonprofit Hospitals and Health Systems Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=746860

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=892114

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Contacts

Fitch Ratings
Primary Analyst
Michael Burger
Director
+1-415-659-5470
650 California Street, Fourth Floor
San Francisco, CA 94108
or
Secondary Analyst
Emily Wong
Senior Director
+1-415-732-5620
or
Committee Chairperson
Eva Thein
Senior Director
+1-212-908-0674
or
Media Relations
Elizabeth Fogerty, +1-212-908-0526
elizabeth.fogerty@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Michael Burger
Director
+1-415-659-5470
650 California Street, Fourth Floor
San Francisco, CA 94108
or
Secondary Analyst
Emily Wong
Senior Director
+1-415-732-5620
or
Committee Chairperson
Eva Thein
Senior Director
+1-212-908-0674
or
Media Relations
Elizabeth Fogerty, +1-212-908-0526
elizabeth.fogerty@fitchratings.com