OREANDA-NEWS. On the effective date of Nov. 18, 2015, Fitch Ratings will upgrade the long-term rating to 'AA' from 'AA-' and affirm the short-term rating of 'F1+' assigned to the Industrial Development Authority of St. Joseph, Missouri, variable-rate demand health facilities revenue bonds (Heartland Regional Medical Center), series 2009A. The Rating Outlook is Stable for the long-term rating.

The rating action is in connection with the substitution of the irrevocable direct-pay letter of credit (LOC) previously provided by Bank of Montreal (rated 'AA-/F1+', Stable Outlook) with a substitute LOC to be issued by U.S. Bank National Association (rated 'AA/F1+', Stable Outlook) and the mandatory tender of the bonds.

KEY RATING DRIVERS:
The long-term 'AA' rating will be based on the higher of the underlying long-term rating assigned to the bonds by Fitch (currently rated 'A+'), and the long-term rating assigned by Fitch to U.S. Bank National Association (rated 'AA/F1+'), the bank providing the irrevocable direct-pay letter of credit LOC securing the bonds, which has an initial stated expiration date of Nov. 18, 2019, unless extended or earlier terminated, during the daily and weekly interest rate modes only. The short-term 'F1+' rating will be based solely on the LOC. For information about the underlying credit rating see Fitch's press release dated Aug.25, 2014 available at www.fitchratings.com'.

Pursuant to the substitute LOC, the bank is obligated to make regularly scheduled payments of principal of and interest on the bonds in addition to payments due upon maturity, acceleration and redemption, as well as purchase price for tendered bonds. Additionally, the bond obligor is in the flow of funds to make timely payments of principal and interest due upon maturity, acceleration and redemption.

The U.S. Bank National Association substitute LOC provides full and sufficient coverage of principal plus an amount equal to 50 days of interest at a maximum rate of 12% based on a year of 365 days and purchase price for tendered bonds, while in the daily and weekly rate modes. On the effective date, the Remarketing Agent for the bonds will be U.S. Bank National Association.

RATING SENSITIVITIES
The long-term rating is tied to the Fitch long-term rating assigned to the bonds and the long-term rating that Fitch maintains on the substitute bank providing the LOC. Changes to one or both of these ratings may affect the long-term rating assigned to the bonds.

The short-term rating is exclusively tied to the short-term rating that Fitch maintains on the bank providing the substitute LOC and will reflect all changes to that rating.