Dallas County Hospital District Downgraded to AA-Plus by Fitch

Fitch Ratings said it has downgraded the following Dallas County Hospital District, Texas, bonds to AA-plus from AAA: $24.8 million limited tax bonds, tax-exempt series 2009A; $222.5 million limited tax bonds, taxable series 2009B (Build America Bonds - Direct Payment); and $457.7 million limited tax bonds, taxable series 2009C (Build America Bonds - Direct Payment).

The rating outlook is stable.

The bonds are secured by property tax levy limited to $0.75 per $100 taxable assessed valuation (TAV) on all taxable property within the county.

The downgrade reflects Fitch's concerns regarding management and operational uncertainties stemming from a failed federal Center for Medicare and Medicaid Services (CMS) survey in 2011. While Fitch believes the district is likely to pass a subsequent re-survey in 2013, the recent failure, along with the ensuing management turnover, are not consistent with Fitch's highest credit rating.

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