Pledge of net revenues of the obligated group (
KEY RATING DRIVERS
LIQUID RESOURCES AVAILABLE FOR UNREMARKETED PUTS: The 'F1+' rating is based on the sufficiency of NMHS's liquid resources and written procedures to fund the purchase price on each mandatory tender date. Based on Fitch's Rating Criteria related to Self-Liquidity, NMHS's eligible cash and investments would cover the maximum mandatory put on self-liquidity bonds on any given date in excess of Fitch's 1.25x threshold for the 'F1+' short-term rating. NMHS posts monthly liquidity reports on EMMA.
STRONG FINANCIAL PROFILE: Fitch maintains an 'AA-' long-term rating on NMHS outstanding revenue bonds. The long-term rating reflects NMHS's leading inpatient market share of 40%, a manageable debt burden, and robust liquidity. In addition, after posting a negative operating margin in fiscal 2013 (
MAINTENANCE OF ADEQUATE LIQUIDITY: Fitch expects NMHS to maintain adequate internal liquid resources to cover its total put exposure in excess of 1.25x to maintain the 'F1+' short-term rating.
For further research see, 'Fitch Downgrades North Mississippi Health Services (MS) Revs to 'AA-'; Affirms S-T at 'F1+'' dated July, 3 2013 and available at www.fitchratings.com.
Additional information is available at 'www.fitchratings.com'.
--'Nonprofit Hospitals and Health Systems Rating Criteria',
--'Rating U.S. Public Finance Short-Term Debt',
U.S. Nonprofit Hospitals and Health Systems Rating Criteria
Rating U.S. Public Finance Short-Term Debt
Source: Fitch Ratings
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