Moody’s Investors Service has upgraded to Aaa from A1 the long-term rating for $120 million of Series 2003 North Carolina Medical Care Commission revenue bonds issued for CaroMont Health. It also assigned the short-term rating of VMIG 1 to the bonds.
The rating is based upon the letter of credit provided by Bank of America NA, the structure and legal protections of the transaction, and Moody’s evaluation of the credit quality of the bank issuing the letter of credit.
Moody’s currently rates Bank of America Aa1 for its long-term obligations and Prime-1 for its short-term obligations. The rating outlook on the bank is stable.
Analysts also noted that the trust indenture does not permit additional bond issuance.
The bonds continue to be insured by MBIA Insurance Corp., which Moody’s currently rates A2 with a negative outlook.