Scottsdale Health will use the proceeds from next week’s $153 million sale of uninsured fixed-rate revenue bonds issued on its behalf by Scottsdale Industrial Development Authority to refund variable- and auction-rate securities issued in 2006 and 2007.
Bond proceeds will refund the Series 2006A and B and the Series 2007A variable-rate bonds. Scottsdale Health will also convert its $89.7 million Series 2006F auction-rate bonds to fixed-rate debt, with insurance by Financial Security Assurance.
Fitch Ratings raised its rating on the system’s debt from BBB-plus to A-minus.
The authority issued $330 million of revenue bonds in 2006 for Scottsdale Health, which used the proceeds to restructure its existing debt.
Fitch said the upgrade is based on Scottsdale Health’s successful completion and opening of its third hospital in November 2007, as well as its strong financial results and leading market position in a growing, affluent service area.
The bonds have been given an unenhanced rating of BBB-plus by Standard & Poor’s. The hospital system’s debt is rated A3 by Moody’s Investors Service.