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Fitch Affirms Scripps Health, CA's Short-Term Rating at 'F1+'

January 23, 2014

SAN FRANCISCO --(BUSINESS WIRE)-- Fitch Ratings has affirmed the 'F1+' rating on Scripps Health's $100 million series 2012B and C variable rate demand bonds issued by the California Health Facilities Financing Authority . The bonds are supported by self-liquidity. Fitch maintains a long-term rating of 'AA-' for Scripps Health's revenue bonds. SECURITY The bonds are secured by a gross receivables pledge of Scripps Health . KEY RATING DRIVERS LIQUID RESOURCES AVAILABLE FOR UNREMARKETED PUTS: The affirmation of the short-term 'F1+' rating is based on Scripps Health's availability of highly liquid resources to fund any unremarketed puts on its $100 million of series 2012B and C weekly variable rate demand bonds. Based on Fitch's rating criteria related to self-liquidity, Scripps Health's available cash and highly liquid investments easily exceeds Fitch's 1.25x requirement to cover the maximum tender exposure on any given date. Scripps Health has liquidation procedures in place detailing the process by which internal funds would be liquidated to meet the tender obligations. STRONG FINANCIAL PROFILE: Fitch maintains an 'AA-' rating for Scripps Health's outstanding revenue bonds due to its strong financial profile, excellent management practices and good market position. RATING SENSITIVITIES AMPLE FINANCIAL CUSHION: Fitch believes there is ample financial cushion regarding the coverage of debt supported by self- liquidity, which leads to significant stability of the short- term rating. Additional information is available at www.fitchratings.com . Applicable Criteria and Related Research : --'Criteria for Assigning Short-Term Ratings Based on Internal Liquidity' ( June 13 , 2013); --'Nonprofit Hospitals and Health Systems Rating Criteria'( May 20, 2013 ). Applicable Criteria and Related Research : Nonprofit Hospitals and Health Systems Rating Criteria -- Effective Aug. 12, 2011 to July 23, 2012 http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648836 Additional Disclosure Solicitation Status http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=816654 ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS . IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE WWW.FITCHRATINGS.COM . PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. Fitch Ratings Primary Analyst: Emily Wong , +1-415-732-5620 Senior Director 650 California Street San Francisco, CA 94109 or Secondary Analyst: Eva Thein , +1-212-908-0674 Senior Director or Committee Chairperson: Jim LeBuhn , +1-312-368-2059 Senior Director or Media Relations: Elizabeth Fogerty , +1-212-908-0526 elizabeth.fogerty@fitchratings.com Source: Fitch Ratings


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