S&P rates Faith Regional Health bonds BBB

Standard & Poor's said it assigned a BBB underlying rating to Faith Regional Health Services, Neb.'s $66 million series 2008A fixed-rate revenue and refunding bonds issued by Madison County Hospital Authority No. 1.

Both series 2008A-1 ($41.415 million) and series 2008A-2 ($24.61 million) are due July 1, 2033.

About $24.6 million of the series 2008A bonds will be used to refund the series 1998 and 2001 hospital revenue bonds. The rest of the series 2008A bonds ($41.4 million) and the series 2008B bonds ($15 million) will help fund construction of a new patient tower.

In addition, S&P affirmed its BBB rating on the authority's series 1998 and 2001 hospital revenue bonds issued for Faith. The outlook remains stable.

S&P said Faith will issue an additional $15 million in series 2008B variable-rate demand bonds backed by a letter of credit in the coming months.

Additionally, management expects to issue $16 million in taxable debt to help fund the purchase of Missionary Benedictine Sisters' 50% ownership in Faith.

Planned debt issuance resulted in S&P's downgrade of Faith to BBB from A- in March.

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