Fitch ups N.Y.C. Health and Hospitals, rates bonds A

Fitch Ratings said it assigned an A rating to the $463 million series 2008A-E health system revenue bonds issued by New York City Health and Hospitals Corp.

The fixed-rate series A bonds will be sold via negotiation during the week of Aug. 11, and the variable-rate series B-E bonds will be sold during the week of Sept. 1.

Proceeds will be used to refund the corporation's outstanding series 2002B-H auction-rate and variable-rate demand bonds and provide $100 million in new funds for equipment acquisition.

For the series B, C, D and E bonds, the rating is an underlying rating. Ratings based on letters of credit will be assigned closer to sale date.

Fitch also upgraded $927 million of the corporation's outstanding parity debt to A from A-. The outlook is stable.

The upgrade reflects the corporation's improved financial profile due largely to a substantial increase in supplemental Medicaid payments resulting from a restructuring of these payments by New York City and New York state.

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