Fitch Ratings has assigned a 'BB' rating to approximately $342.1 million Michigan State Hospital Finance Authority hospital revenue and refunding bonds series 2008 (Detroit Medical Center Obligated Group). In addition, Fitch upgrades to the rating on Detroit Medical Center's (DMC) approximately $524.5 million of outstanding bonds to 'BB' from 'B+'. The Rating Outlook has been revised to Stable from Positive.
Bond proceeds are expected to refund DMC outstanding series 1988, 1993A and 1995 bonds (aggregating $139.6 million), to fund approximately $85 million of prior and future capital expenditures, fund $92 million of new capital projects including a new outpatient center for Children's Hospital of Detroit, fund a debt service reserve fund and pay associated costs of issuance. The series 2008 bonds are expected to be structured as traditional fixed rate bonds with pricing the week of Oct. 13 via negotiated sale.
