Fitch Affirms Memorial Health Services' (CA) Self-Liquidity Rating at 'F1+'

SAN FRANCISCO--()--Fitch Ratings has affirmed the short-term 'F1+' rating on the variable-rate bonds listed below based on Memorial Health Services' (Memorial) self-liquidity.

--$50,000,000 California Health Facilities Financing Authority (CA) (Memorial Health Services) variable-rate revenue bonds series 2013B;

--$50,000,000 California Health Facilities Financing Authority (CA) (Memorial Health Services) variable-rate revenue bonds series 2013A;

--$56,100,000 California Health Facilities Financing Authority (CA) (Memorial Health Services) variable-rate health facilities revenue refunding bonds series 1994;

--$65,000,000 Long Beach (CA) (Memorial Health Services) variable-rate health facilities revenue bonds series 1991.

In addition, Fitch maintains a long-term rating of 'AA-' on Memorial's revenue bonds.

KEY RATING DRIVERS

LIQUID RESOURCES AVAILABLE FOR UNREMARKETED PUTS: The affirmation of the short-term 'F1+' rating is based on Memorial's availability of highly liquid resources to fund any unremarketed puts on its $221.1 million of variable-rate debt supported by self-liquidity. The series 2013A, 1994 and 1991 bonds are in a weekly mode and the series 2013B are in a windows mode. Based on Fitch's rating criteria related to self-liquidity, Memorial's available cash and highly liquid investments exceeds Fitch's 1.25x requirement to cover the maximum tender exposure on any given date. Memorial has liquidation procedures in place detailing the process by which internal funds would be liquidated to meet the tender obligations and Memorial provides Fitch with quarterly liquidity reports.

STRONG FINANCIAL PROFILE: Fitch maintains an 'AA-' rating on Memorial's outstanding revenue bonds due to its solid financial profile, excellent management practices and growing footprint in a competitive market.

RATING SENSITIVITIES

MAINTENANCE OF ADEQUATE LIQUIDITY: Fitch expects Memorial to sustain adequate internal liquid resources to cover its total put exposure.

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

For more information see Fitch's research Memorial Health Services, California dated Nov. 4, 2013.

Applicable Criteria and Related Research:

--Rating US Public Finance Short Term Debt, Dec. 19, 2013;

--Nonprofit Hospitals and Health Systems Rating Criteria, May 30, 2014.

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

Rating U.S. Public Finance Short-Term Debt

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724680

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=907194

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Contacts

Fitch Ratings
Primary Analyst
Emily Wong, +1-415-732-5620
Senior Director
Fitch Ratings, Inc.
650 California Street
San Francisco, CA 94109
or
Secondary Analyst
Michael Burger, +1-415-659-5470
Director
or
Committee Chairperson
Jim LeBuhn, +1-312-368-2059
Senior Director
or
Media Relations
Elizabeth Fogerty, New York, +1-212-908-0526
elizabeth.fogerty@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Emily Wong, +1-415-732-5620
Senior Director
Fitch Ratings, Inc.
650 California Street
San Francisco, CA 94109
or
Secondary Analyst
Michael Burger, +1-415-659-5470
Director
or
Committee Chairperson
Jim LeBuhn, +1-312-368-2059
Senior Director
or
Media Relations
Elizabeth Fogerty, New York, +1-212-908-0526
elizabeth.fogerty@fitchratings.com