Fitch cuts Sarasota Memorial, Fla., bonds to AA-/F1+

Fitch Ratings said it will downgrade the long-term rating to AA- from AA on Sarasota County Public Hospital District, Fla.'s $89.95 million of variable-rate demand revenue bonds (Sarasota Memorial Hospital project) on the date of a proposed conversion to a weekly variable-rate mode from an auction-rate mode.

At the same time, a short-term rating of F1+ will be assigned to the bonds.

The new ratings are based on an irrevocable, direct-pay letter of credit from Fifth Third Bank, which is rated AA-/F1+ and on negative watch.

The previous AA rating was based on insurance form Ambac Assurance Corp.

Conversion of the bonds is expected on April 9. They will be subject to a mandatory tender on the conversion date.

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