2008-11-18 01:08:02 -

Fitch Ratings assigns a rating of 'AA-/F1+' to the Bucks County Industrial Development Authority (PA), hospital revenue bonds (Grand View Hospital) $73,965,000 series A of 2008, and a rating of 'A+/F1' to the $70,775,000 series B of 2008. The rating for each series is based on the support provided by an irrevocable, direct-pay letter of credit (LOC) issued by: (1)

TD Bank, N.A. (rated 'AA-/F1+' by Fitch), securing the series A of 2008 bonds, and (2) PNC Bank, National Association (rated 'A+/F1'), securing the series B of 2008 bonds. Under the terms of the LOCs, each bank is obligated to make payments of principal and interest upon maturity, acceleration, and redemption, and purchase price of tendered bonds.
The rating for both series will expire upon the earliest of: Nov. 19, 2011, the stated expiration date of the LOCs, unless such date is extended; any prior termination of a respective LOC; and defeasance of the bonds. The LOCs provide full coverage of principal plus an amount equal to 51 days' interest at a maximum rate of 10%, based on a 365-day year and purchase price for tendered bonds during the weekly and daily rate modes. The remarketing agents for the bonds will be Commerce Capital Markets, Inc. for the series A of 2008 bonds and PNC Capital Markets LLC for the series B of 2008 bonds. The bonds are expected to be delivered on or about Nov. 20, 2008.
The bonds initially bear interest at the weekly interest rate mode, but may be converted to a daily, bond interest term, long-term, or fixed interest rate mode. While the bonds bear interest in a weekly interest rate mode, interest payments are the first Thursday of each month, commencing Dec. 3, 2008. In the daily rate mode, interest is paid on the fifth business day of each month. While in the weekly or daily rate mode, bondholders may optionally tender their bonds on any business day with the required prior notice to the tender agent.
The bonds are subject to mandatory tender on: (1) the first day of each interest rate period (conversion); (2) the fifth business day preceding any expiration or termination of the LOC; (3) the date of replacement of an LOC with an alternate LOC; and (3) the fourth business day after receipt by the trustee of a written notice from the LOC provider of an event of default under the reimbursement agreement, or that the interest component of the LOC will not be reinstated following an interest drawing, with such notice in each case directing a mandatory tender. Alternatively, the banks have the option to direct the trustee to accelerate the bonds upon the occurrence of either such event. Optional and mandatory redemption provisions also apply to the Bonds.
The bonds are being issued to finance or refinance: the retirement of the Authority's 2004A bonds, two prior loans, and various capital projects.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww ... 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

Trudy Zibit, +1-212-908-0689

(for information on the bonds)

Cindy Stoller, +1-212-908-0526 (Media Relations)

mailto:cindy.stoller@fitchratings.com