Fitch Rates Illinois Fin Auth, VRD Rev Rfdg Bnds, Ser 08B (Swedish Covenant Hosp) 'AA-/F1+'

2008-06-11 00:34:33 -

- Fitch Ratings assigns a rating of 'AA-/F1+' to the $42,500,000 Illinois Finance Authority, variable rate demand revenue refunding bonds, series 2008 B (Swedish Covenant Hospital). The rating is based on the support provided by an irrevocable, direct-pay letter of credit (LOC) issued by Allied Irish Banks, p.l.c., acting through its New York Branch (the Bank), securing the bonds.

The Bank is obligated to make payments of principal and interest when due, as well as the purchase price for tendered bonds. The rating will expire on the earliest of: June 17, 2011, the stated expiration date of the LOC, unless such date is extended; any prior termination of the LOC; or the defeasance of the bonds. The LOC provides full coverage of principal plus an amount equal to 34 days of interest computed at a maximum rate of 10%, based on a year of 365 days, and purchase price for tendered bonds while in the daily, weekly or monthly rate modes. The remarketing agent for the bonds is Merrill Lynch. The bonds are expected to be available for delivery on or about June 17, 2008.

The bonds will initially bear interest in the weekly interest rate mode, but may be converted to a daily, monthly, commercial paper rate, a fixed rate, term rate, semi-annual or auction rate mode. While in the weekly mode, interest will be paid on the first business day of each month, commencing on July 1, 2008 and bondholders may tender bonds on any business day, with five days prior notice. The Bonds are subject to mandatory tender on the first day of each rate period and upon substitution, termination or expiration of the LOC. Optional and mandatory redemption provisions also apply to the bonds.

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