Moody's rates McLaren Health Care bonds A1

Moody's Investors Service said it assigned A1 long-term and underlying ratings to McLaren Health Care Corp.'s $203.7 million series 2008A fixed-rate revenue and refunding bonds and $174 million series 2008B variable-rate demand obligation refunding revenue bonds to be issued through the Michigan State Hospital Finance Authority.

Moody's revised its outlook on McLaren to positive from stable, reflecting the system's continued improved cash flow generation, including the successful integration of Mount Clemens Regional Medical Center and POH Regional Medical Center.

Moody's affirmed McLaren's A1 rating on about $321 million of rated bonds.

The series 2008B bonds are expected to be supported by a letter of credit from JPMorgan Chase Bank, which is expected to be rated separately.

Proceeds will be used to finance $17.4 million of capital spending, pay issuance costs and refund $169 million of series 2005A & B indexed put bonds, $145 million of Mount Clemens series 2003A & B bonds and $42 million of POH Regional Medical Center series 1994A bonds.

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