Moody’s Investors Service last week upgraded to Aa2 from Aa3 the long-term rating on debt issued for the Medical Center of Central Georgia Inc.
The $80 million was sold by the Macon-Bibb County Hospital Authority in 2005 as revenue anticipation certificates. Moody’s also affirmed its VMIG1 short-term rating.
The actions were taken in conjunction with the delivery of a direct pay letter of credit from SunTrust Bank that became effective on Aug. 15. Agency analysts said the long-term rating will be based on the rating of Ambac Assurance Corp. or the rating of SunTrust whichever is higher. The municipal bond insurance policy provided by Aa3-rated Ambac will remain in place following the conversion.
In rating the credit, agency analysts said they also took into account the letter of credit from SunTrust, as well as the structure of the transaction, which ensures timely debt service and purchase price payments to investors.