Louisville Medical Center Laundry, KY Revenue Refunding Bond Outlook Revised To Negative From Positive

Stocks and Financial Services Press Releases Wednesday June 27, 2018 08:58
--27 Jun--S&P Global Ratings

CHICAGO (S&P Global Ratings) June 26, 2018--S&P Global Ratings revised its outlook to negative from positive and affirmed its 'BBB+' long-term rating on Louisville & Jefferson County Metro Government, Ky.'s $3 million series 2012 fixed-rate laundry revenue refunding bonds issued for Louisville Medical Center Laundry (LMC Laundry). The bonds are supported by a pool of revenue streams from user institutions that use a share of the laundry services provided by LMC.

The bonds are rated under a "weak link" structure, and according to our criteria, the rating on LMC Laundry reflects the weakest rating among the participants that support the LMC Laundry, which is currently Catholic Health Initiatives (CHI). However, CHI was deconsolidated with the University of Louisville Medical Center (UMC) in fiscal 2018, and UMC is now operating independently.

"The negative outlook reflects our view that the weakest member in the pool could change over the coming months, given CHI's divestiture from UMC," said S&P Global Ratings credit analyst Allison Bretz. "Pending an evaluation of UMC, it is possible it could now be the weakest member of the pool. We plan to complete a full review of UMC in the next few months, at which point we will update the rating on LMC Laundry.

" The 'BBB+' rating reflects our long-term rating on CHI, which is currently the lowest-rated member of the pool.
The user contract for the laundry is between LMC (the general manager) and three primary users:
UMC (unrated; currently under evaluation),
Norton Healthcare ('A-'), and
KentuckyOne Health ('BBB+', as a part of CHI).

A lower rating is possible depending on our assessment of UMC's financial and enterprise profiles. We would also lower the rating in the event we lower the rating on CHI, although CHI currently has a positive outlook. A return to a stable or positive outlook depends on our ultimate assessment of UMC's credit quality.

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 S&P Global Ratings' public website at www.standardandpoors.com. Use the Ratings search box located in the left column.

Latest Press Release

TMB aims to expand customer base with Get MORE with TMB strategy, which has resulted in continuous growth in deposit.

TMB aims to expand customer base with Get MORE with TMB strategy, which has resulted in continuous growth in deposit. The Bank remains prudent on loan side. Asset quality is well-managed as target. The net profit for the first quarter of 2019 recoded at...

New York, London and Hong Kong expected to remain as top listing destinations in 2030

- Exchanges in developed markets are proving to be resilient, benefitting from their recognised liquidity and stability - Companies from China and India expected to dominate issuance in 2030, although growth of exchanges in emerging markets has been more...

EXIM Thailand Appoints Head of New Business Unit Corporate Business 6 Department

EXIM Thailand appointed Miss Doungjai Prombunyat as First Vice President of Corporate Business 6 Department, taking effect from now onwards. Export-Import Bank of Thailand (EXIM Thailand) appointed Miss Doungjai Prombunyat as First Vice President of...

CIMB THAI posts THB 325.0 million net profit for 3M2019, a 92.4% Y-o-Y increase

- Net interest income increased 4.3% YoY from loan expansion and higher interest income on investments - Provisions declined 17.4% YoY 3M2019 Financial Results Mr. Omar Siddiq, Acting President and Chief Executive Officer of CIMB Thai Bank PCL, stated...

Photo Release: KBank rolls out real-time cross-border inward remittance service to accounts of every bank

Mr. Silawat Santivisat, KBank Senior Executive Vice President, said KBank is ready to kick off the inward remittance service from around the world via KBank to transfer funds to recipients' accounts held at over 21 banks using PromptPay on a real-time...

Related Topics