Standard & Poor's Ratings Services raised its underlying rating (SPUR) to 'A+' from 'C' and revised its outlook to stable from developing on West Contra Costa HealthCare District, Calif.'s certificates of participation (COPs), series 2004.
"The raised rating reflects a court order confirming the district's plan for the adjustment of debt, which classifies the certificates as a secured unimpaired claim," said Standard & Poor's credit analyst Misty Newland. "In addition, the rating is supported by a large and mature parcel tax base that benefits from its participation in the San Francisco Bay Area economy."
The proceeds of certificates were used to support four months of working capital. Although the district currently has no debt plans, additional deficit financing bonds may be needed to relieve continued operational pressures.
The district filed for Chapter 9 bankruptcy protection on Oct. 1, 2006. The plan for the adjustment of debt includes the district's funding and treatment of creditors, which was filed in the U.S. Bankruptcy Court on June 3, 2008. The court order confirming the plan went into effect Aug. 15, 2008.
The district serves an estimated population of 250,000 in West Contra County, about 15 miles northeast of the City of San Francisco. The district owns Doctors Medical Center - San Pablo, a 247-bed acute care hospital, with a primary service area that encompasses the cities of Richmond, San Pablo, El Cerrito, Pinole, and Hercules, as well as the unincorporated communities of Rodeo and El Sobrante. The district also owns two medical office buildings adjacent to the hospital.
Complete ratings information is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com; select your preferred country or region, then Ratings in the left navigation bar, followed by Credit Ratings Search.
Media Contact:
Edward Sweeney, New York, (1) 212-438-6634
edward_sweeney@standardandpoors.com
Analyst Contacts:
Misty Newland, San Francisco (1) 415-371-5073
Robert Williams, San Francisco (1) 415-371-5070 |
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