Moody's Investors Service said it has placed the Aa1 rating of Gwinnett County Hospital Authority, Ga.'s revenue anticipation certificates Series 2004B on review for possible downgrade, affecting $12.6 million in rated debt outstanding.
The rating action is prompted by recent discussions with the county regarding the legal structure of the security and the need for additional clarification on the Intergovernmental agreement between Gwinnett County and the hospital authority.
The Intergovernmental agreement serves as the security for the certificates. While there is no indication of underlying credit stress on the county or the hospital authority, during the review Moody's expects to obtain additional information, including specifics regarding the obligations of the county and the authority, to assess the legal structure in greater detail.
The review also will focus on the rights of bondholders in the event of nonpayment and the avenues of recourse available for bondholders in the event of default.
