Fitch also affirms the 'BBB+' rating on approximately $543 million of outstanding bonds, which are listed below. The Rating Outlook is Stable.
The series 2007A bonds will be structured as weekly variable-rate demand bonds and will be insured by Ambac Assurance, whose insurer financial strength is rated 'AAA' by Fitch. A liquidity facility for tendered bonds will be provided by JPMorgan Chase Bank, N.A. Fitch expects to assign both a long-term rating based upon the bond insurance policy and a short-term rating based on the liquidity facility nearer to the closing of the series 2007A bond issue. Bond proceeds will be used to advance refund approximately $65.4 million of the Authority's series 2001A bonds maturing on or after Nov. 15, 2012, a debt service reserve fund, and pay for costs of issuance. In conjunction with series 2007 financing, UCH has entered into a LIBOR-based floating-to-fixed swap with Citigroup which will effectively convert the series 2007 bonds to a fixed obligation. The series 2007A bonds are scheduled to sell the week of Jan. 22 via negotiation by Citigroup Capital Markets Inc.
