Indiana University Health Inc. Obligated Group 2018A Bonds Assigned #AA# Rating

Stocks and Financial Services Press Releases Wednesday April 4, 2018 09:34
CHICAGO--4 Apr--S&P Global Ratings

CHICAGO (S&P Global Ratings) April 3, 2018--S&P Global Ratings assigned its 'AA' long-term rating to the Indiana University Health Inc. Obligated Group taxable series 2018A bonds. At the same time, S&P Global Ratings affirmed its 'AA' long-term rating on the Indiana Finance Authority's (IFA) series 2011N, 2014A, 2015A, and 2016A bonds and its 'AA' underlying rating (SPUR) on the IFA's series 2011A, 2011B, 2011C, 2011D, 2011E, 2016B, and 2016C hospital revenue bonds.

In addition, S&P Global Ratings affirmed its 'AAA/A-1+' rating on the IFA's series 2011A, 2011B, 2011C, and 2011D bonds, and its 'AA+/A-1' rating on the IFA's series 2011E, 2016B, and 2016C bonds. The series 2011A, 2011C, and 2011D ratings are based on the application of our joint criteria assuming a low correlation between Indiana University Health (IU Health; 'AA') and The Northern Trust Co. (AA-/A-1+). The series 2011B rating is based on the application of our joint criteria assuming a low correlation between IU Health and TD Bank N.A. (AA-/A-1+).

The 2011E rating is based on the application of our joint criteria assuming a low correlation between IU Health and Bank of America (A+/A-1). The 2016B and 2016C ratings are based on the application of our joint criteria assuming a low correlation between IU Health and Wells Fargo Bank N.A. (A+/A-1). All debt was issued on behalf of the Indiana University Health Obligated Group.

The outlook, where applicable, is stable. "The rating reflects our continued belief that as IU Health continues to execute its strategy of enhancing the services it offers and expanding its reach throughout the state, it will continue to produce extremely strong operations," said S&P Global Ratings credit analyst Brian Williamson.

IU Health will be issuing approximately $354 million series 2018A bonds to support the following: $170 million for future capital spending;$115 million to refund $50 million series 2015C, pay off $50 million line of credit, and terminate $15.3 million of swaps $65.2 million to advance refund the callable portion of the series 2011NThe stable outlook reflects our view that as IU Health's strategies help support its strong operations and balance sheet measures, it will be able to manage the pending large capital plans without materially affecting said measures. Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at www.standardandpoors.com for further information. Complete ratings information is available to subscribers of RatingsDirect at www.capitaliq.com.

All ratings affected by this rating action can be found on the S&P Global Ratings' public website at www.standardandpoors.com. Use the Ratings search box located in the left column.

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