Bangkok--15 Jan--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'BBB-' long-term rating to California Statewide Communities Development Authority's series 2010 fixed-rate revenue and refunding bonds. At the same time, Standard & Poor's affirmed its 'BBB-' underlying rating (SPUR) on the authority's series 2006 variable-rate demand bonds, and its 'BBB-' long-term rating on the Association of Bay Area Governments Finance Authority for Nonprofit Corporations' series 1997A and taxable series 1997B revenue refunding certificates of participation. The bonds were issued for American Baptist Homes of the West (ABHOW). The outlook is positive.
"The ratings are based on ABHOW's positive operating performance, characterized by a 3.4% operating margin at fiscal year-end Sept. 30, 2009, which exceeds our medians for 'BBB' category senior-living systems," said Standard & Poor's credit analyst Karl Propst. "In addition, we believe that the scope of ABHOW's operations provides it with significant revenue and risk diversification."
We understand that series 2010 bonds will fully refund ABHOW's series 1997A and B, 1998B, and 2002A bonds, and will provide $20 million of new project funds. Upon refunding, the ratings on the refunded bonds will be withdrawn.
ABHOW comprises a cross-collateralized group with eight CCRCs in California, as well as one nonobligated CCRC affiliate, a marketing and consulting affiliate, and nine owned and 12 managed affordable rental retirement housing communities located in California and Washington.
RELATED RESEARCH
USPF Criteria: Not-For-Profit Health Care, June 14, 2007
USPF Criteria: Senior Living, June 18, 2007
Criteria: Methodology And Assumptions: Approach To Evaluating Letter Of Credit-Supported Debt, July 6, 2009
Complete ratings information is available to RatingsDirect on the Global Credit Portal subscribers at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.
Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Karl Propst, Dallas (1) 214-871-1427
Stephen Infranco, New York (1) 212-438-2025