MOODY'S ASSIGNS A2 RATING TO TORRANCE MEMORIAL MEDICAL CENTER'S (CA) $235 MILLION OF SERIES 2010A - C BONDS; EXISTING RATING DOWNGRADED TO A2 FROM A1; OUTLOOK STABLE AT THE LOWER RATING LEVEL

Posted on: August 18, 2010, 2:11 pm

NEW YORK, Aug 18, 2010 -- Moody's Investors Service has assigned an A2 rating to Torrance Memorial Medical Center's (TMMC) $135 million of Series 2010A Fixed Rate Bonds, $64 million of Series 2010B Variable Rate Demand Bonds (VRDB) and $35 million of Series 2010C VRDB to be issued by the City of Torrance, CA. The Series 2010B bonds are expected to be back by a letter of credit (LOC) from Citi and the Series 2010C bonds to be backed by a LOC from JP Morgan. We have downgraded TMMC's existing long-term and underlying ratings to A2 from A1, affecting $56 million of Series 2001A bonds and $34 million of Series 1992 bonds (the Series 1992 bonds are expected to be refinanced as part of this transaction) (see RATED DEBT section below). The downgrade is attributable the material 330% increase in debt outstanding and the risks associated with the construction of a new patient tower on TMMC's main campus. The outlook is unchanged at stable at the lower rating level...

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