NEW YORK - (Business Wire) Fitch Ratings confirms Nassau Health Care Corporation (New York) bonds, series 2004A (Nassau County Guaranteed) (Taxable) at 'AAA'. In addition, Fitch assigns a short-term 'F1+' rating to $25,775,000 series 2004A bonds. The 'AAA' rating continues to be based on the support of an insurance policy provided by Financial Security Assurance Inc., which insures scheduled payments of principal and interest on the bonds. The short-term 'F1+' rating assigned to the bonds is based on a standby bond purchase agreement (SBPA) provided by Dexia Credit Local, acting through its New York Branch. The 'F1+' rating is assigned in connection with the conversion of the bonds from an auction rate mode to a weekly rate mode. The conversion of the bonds is expected to occur on or about July 9, 2008. J.P. Morgan Securities Inc. is the remarketing agent for the bonds.
The SBPA provides for the payment of the purchase price of tendered bonds during the weekly and monthly rate modes and is sized to cover the principal portion of the purchase price plus 35 days of interest at the maximum rate of 15%, based on a year of 365 days. The SBPA will expire on July 9, 2013, unless such date is extended or earlier terminated pursuant to the terms of the SBPA. The short-term rating on the bonds will expire upon any expiration or termination of the SBPA.
The interest rate on the bonds may be converted from the weekly rate mode to a daily, monthly, quarterly, adjustable, auction or fixed interest rate mode. While bonds bear interest in the daily, weekly and monthly rate modes, interest is payable on the first business day of each month, commencing Aug. 1, 2008. After the conversion to the weekly rate mode, bondholders may tender their bonds upon requisite notice. The bonds are subject to mandatory tender: (i) on interest rate mode conversions dates; (ii) upon expiration or termination of the SBPA; and (iii) upon substitution of the SBPA or the bond insurance provider. The bonds are also subject to mandatory and optional redemption.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 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 Ratings, New York
Mary Jane Ziga, 212-908-0529
or
Media Relations:
Christopher Kimble, 212-908-0226
