Moody's rates St. Joseph Health, Calif., bonds Aa3

Moody's Investors Service said it assigned Aa3 underlying ratings to St. Joseph Health System, Calif.'s $137 million series 2008B variable-rate refunding revenue bonds to be issued by the Lubbock Health Facilities Development Corp. The outlook is stable.

The expected sale date is June 16.

The bonds are variable-rate demand obligations and are expected to be supported by a letter of credit from Wachovia Bank. Enhanced long-term and short term ratings reflecting the letter of credit will be published separately.

Moody's also affirmed the Aa3 long-term and underlying ratings on $981 million of St. Joseph's debt to remain outstanding.

The series 2008B bonds will refund the series 1998 fixed-rate revenue bonds issued by the Lubbock Health Facilities Development Corp., which create approximately $6 million of net present value savings for St. Joseph on an expected basis.

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