Fitch Affirms UnityPoint Health's Self-Liquidity Bonds at 'F1+'
--$200,000,000 UnityPoint Health taxable commercial paper notes series A (maximum authorized amount);
--$85,000,000 Wisconsin Health and Educational Facilities Authority variable rate health facilities revenue bonds, series 2014B-1/B-2.
Bonds are general, unsecured obligations of the obligated group.
KEY RATING DRIVERS
LIQUID RESOURCES AVAILABLE FOR UNREMARKETED PUTS: The affirmation of the short-term 'F1+' rating is based on the sufficiency of UnityPoint's liquid resources and written procedures to fund the purchase price on each mandatory tender date. Based on Fitch's rating criteria related to self-liquidity, UnityPoint's eligible cash and investment position would cover the maximum mandatory put on self-liquidity bonds on any given date in excess of Fitch's 1.25x threshold for the 'F1+' short-term rating. UnityPoint posts quarterly liquidity reports on the Municipal Securities Rulemaking Board's EMMA website.
STRONG FINANCIAL PROFILE: Fitch previously affirmed UnityPoint's 'AA-' long-term rating on April 23, 2014. The long-term rating reflects the system's broad operating platform, solid liquidity, stable operating profitability and light debt burden.
Fitch expects UnityPoint Health to maintain adequate internal liquid resources to cover its total put exposure in excess of 1.25x to maintain the 'F1+' short-term rating.