Fitch Ratings assigned a AA to the Maine Health and Higher Educational Facilities Authority's $37.25 million of Series 2011C revenue bonds, which are expected to sell by negotiation this week.

The bonds will be used to refund outstanding bonds for debt-service savings.

In addition, Fitch affirmed a AA rating for $1.3 billion of outstanding revenue bonds.

The credit outlook is stable.

Fitch cited solid loan security, strong program credit enhancement, and sound program management and underwriting.

The authority's loan pool consists of 66 borrowers, with a moderate concentration of single borrowers. The largest, the Maine Health System, represents 14% of the total outstanding portfolio, and the top 10 borrowers account for about 64% of the outstanding loan balance.

Roughly 59% of the outstanding loan balances are to hospitals, 26% are to higher education institutions, and the remaining 15% is spread among mental health facilities, nursing homes, community care retirement communities, and social service organizations.

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