Fitch Rates Saint John's Communities, Inc. (WI) Ser 2009A Prefunded Bonds 'AAApre'; Outlook Stable

NEW YORK--()--Fitch Ratings assigns a rating of 'AAApre' to the $39,145,000 Wisconsin Health and Educational Facilities Authority (the authority) revenue bonds, series 2009A (Saint John's Communities, Inc.). The Rating Outlook is Stable.

KEY RATING DRIVERS

The 'AAApre', Stable Outlook rating is based on the pledge of securities in the irrevocable escrow fund securing the bonds and reflects the lien of the refunded bondholders on the escrow trust funds and that all amounts have been invested in State and Local Government Securities (SLGS), which are direct non-callable obligations of the United States. The U.S. full faith and credit is currently rated 'AAA', Stable Outlook by Fitch.

The bonds will be refunded on Dec. 8, 2015 with proceeds of the authority's $20,500,000 adjustable rate refunding revenue bonds, series 2015A (Saint John's Communities, Inc.) and the authority's $25,195,000 revenue bonds, series 2015B (Saint John's Communities, Inc.) The ratings apply to the refunded bonds listed by CUSIP numbers, below. The refunded bonds with maturity dates of Sept. 15, 2029 and Sept. 15, 2039 will be redeemed on Sept. 15, 2019 at par plus accrued interest.

Pursuant to an irrevocable escrow deposit agreement, U.S. Bank National Association, as escrow agent, holds a separate special irrevocable escrow fund in trust for the benefit of the refunded bondholders. All cash and securities held in this fund are pledged irrevocably to the payment when due of interest on the refunded bonds and the payment of principal upon redemption. In the future, any substitute or additional investments are limited to non-callable obligations of the United States.

The Arbitrage Group, Inc. verified the mathematical accuracy of computations relating to the adequacy of income from escrowed funds to pay debt service requirements of the refunded bonds. These computations were contained in schedules provided to them by Piper Jaffray & Co., underwriter and placement agent for the refunding bonds transaction. According to the Arbitrage Group verification report, the anticipated receipts from the securities and cash deposited will produce amounts necessary to provide for the timely payment of principal and interest when due as scheduled or at early redemption. Prior to accepting substitute investment securities or disbursing funds to Saint John's Communities, the escrow agent must receive a new report verifying the continued sufficiency of escrowed funds to meet all future payments of principal and interest on the refunded bonds.

RATING SENSITIVITIES

The rating is exclusively tied to the U.S. sovereign creditworthiness and will reflect all changes to that rating.

The 'AAApre', Stable Outlook rating applies to the bonds with the following CUSIP numbers:

--97710BMA7

--97710BMC3

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

Applicable Criteria

Guidelines for Rating Prerefunded U.S. Municipal Bonds (pub. 09 Dec 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=818549

U.S. Municipal Structured Finance Criteria (pub. 23 Feb 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=862222

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=996238

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=996238

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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Contacts

Fitch Ratings
Kasia Reed
Analytical Consultant
+1-212-908-0500 x5065
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Linda Friedman
Senior Director
+1-212-908-0727
or
Committee Chairperson
Joseph Staffa
Senior Director
+1-212-908-0829
or
Media Relations
Sandro Scenga, New York, +1-212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Kasia Reed
Analytical Consultant
+1-212-908-0500 x5065
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Linda Friedman
Senior Director
+1-212-908-0727
or
Committee Chairperson
Joseph Staffa
Senior Director
+1-212-908-0829
or
Media Relations
Sandro Scenga, New York, +1-212-908-0278
sandro.scenga@fitchratings.com