Fitch rates Lake Hospital System, Ohio, bonds A-

Fitch Ratings said it assigned an A- rating to Lake County, Ohio's $190 million series 2008A-C revenue bonds issued for Lake Hospital System, Inc.

The hospital system expects to issue a combined $114.5 million of series 2008A and 2008B revenue bonds and $74.2 million of series 2008C refunding revenue bonds. The series 2008A and 2008B bonds will be structured as variable-rate demand bonds, and the series 2008C bonds will be uninsured fixed-rate bonds. The bonds will amortize from 2011 through 2043.

The bonds are expected to sell via negotiation the week of June 16.

Proceeds from the series 2008A and 2008B bonds will be used to refund a bridge loan that was used to refinance the corporation's series 2007B and 2007C auction-rate securities in early 2008.

The series 2008A and 2008B bonds will be issued in the variable-rate mode with support from a letter of credit from JPMorgan Chase (rated AA-/F1+ by Fitch), and Fitch expects to issue a short-term rating nearer to the closing date.

The series 2008C bonds will be issued as uninsured fixed-rate bonds and will refund the approximately $28.9 million in outstanding series 2004 bonds as well as the $40.9 million of 2007A auction-rate bonds.

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