Lompoc Valley Medical Center in Santa Barbara County, Calif., intends to sell $4.06 million in insured revenue bonds to help fund a facility expansion project.
New York-based Fitch Ratings has assigned an 'A' rating to the $4.06 million in series 2009 bonds based on the “Insurer Financial Strength” rating of ‘A’ given to the state of California's Cal-Mortgage Loan Insurance Division. Cal-Mortgage’s rating reflects the state of California's general obligation rating of 'A'.
The bonds are expected to sell on or about May 6, via negotiation, and mature July 1, 2010-2016. Fitch also affirmed the 'A' rating on outstanding bonds of Cal-Mortgage and declared the rating outlook as “stable.”
Cal-Mortgage is a division of the Office of Statewide Health Planning and Development of the State of California. The agency’s mission is to improve access to capital for necessary healthcare facilities and services without cost to taxpayers.
Cal-Mortgage primarily guarantees nonrated and below-investment grade healthcare credits that demonstrate community need.
As of Feb. 28, 2009, Cal-Mortgage insured $1.625 billion in outstanding loans covering 139 facilities, backed by $193 million held in the Health Facility Construction Loan Insurance Fund. Bonds insured by Cal-Mortgage also had $130 million in debt service reserves.