ALASKA: Hospital Valdez

Fitch Ratings assigned an A rating with a stable outlook to the Alaska Municipal Bond Bank Authority's $19 million of revenue bonds selling next week.

The bank is acting as the conduit issuer for the city of Valdez, which will use the proceeds build a 21-bed hospital to replace an existing facility. The bonds will be secured by the gross revenues of the hospital. However, two debt service reserve funds also secure the debt.

Fitch noted that the authority can use its custodian account to make payments to bondholders in the event that other security provisions fail to yield sufficient funds, although this account is not pledged to bondholders.

Standard & Poor's rates the transaction A, while Moody's Investors Service did not assign a rating.

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