Fitch Ratings said it has upgraded to BBB-plus from BBB the rating on $17,710,000 certificates of participation (2010) issued by Eden Township HealthCare District on behalf of Baywood Court.

The rating outlook is revised to stable from positive.

The bonds are secured by a pledge of the gross revenues of the obligated group, a debt service reserve fund, and a lien and security interest in BWC's property.

The upgrade reflects BWC's consistently solid financial performance with nearly all key metrics exceeding Fitch's BBB category medians.

The favorable financial performance is supported by high occupancy rates across the continuum of care. Through the 9-month interim period ended March 31, 2013, occupancy rates in independent living units (ILUs), assisted living units (ALUs), and skilled nursing facility (SNF) were 98%, 93%, and 88%, respectively.

 In its last rating action, Fitch noted that an upgrade would be likely with continued growth in BWC's liquidity, which had dropped due to funds taken off its balance sheet in 2008 for health center renovations. At March 31, 2013, BWC had $15.1 million in unrestricted cash and investments, representing a 15% increase year over year and a more than 50% increase since fiscal year ended June 30, 2010, when unrestricted cash and investments stood at approximately $9.8 million.

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