Fitch Ratings has assigned an 'AA' to Partners HealthCare System's approximately $475 million Massachusetts Health and Educational Facilities Authority revenue bonds (Partners HealthCare System), fixed-rate revenue bonds, series 2009J, which are expected to be sold as two sub series. Fitch also affirms its 'AA' long-term rating on all of Partners' outstanding debt and affirms its 'F1+' rating on approximately $485 million of Partners HealthCare System's debt that is backed by self-liquidity. For certain issues, the ratings are underlying ratings given without consideration of credit enhancement. The Rating Outlook is Stable.
Proceeds from the series 2009 bonds will be used to refund approximately $75 million of series G auction-rate debt and approximately $150 million of series 1997A and 1999B bonds. The final par of the refunding issuance will depend on market conditions at the time of sale. The remaining bond proceeds will fund various capital projects within the Partners system, including partial support for B3C, Partners' large capital project at the General Hospital, which involves the construction of an approximately 500,000 gross square foot building to house a relocated and expanded radiation oncology department, an expanded emergency department, three levels of operating and procedure suites, 150 neurosciences and medical oncology intensive care unit and acute patient rooms, a new sterile processing department and a new central receiving dock.
The 'F1+' rating is supported by Partners' long-term rating and same-day liquidity as of Sept. 30, 2009 which exceeds Fitch's criteria of 1.25 times (x) to cover the maximum one-day exposure on all of Partners' variable-rate debt backed by self-liquidity in the event of an un-remarketed put. The total amount of debt that Partners supports with self-liquidity is approximately $484.7 million, with a maximum one-day exposure of $250 million.