|[March 20, 2013]
Fitch Affirms Kaiser Permanente (CA) S-T Rating at 'F1'
CHICAGO --(Business Wire)--
Fitch Ratings has affirmed the 'F1' rating on approximately $1.48
billion of weekly variable-rate demand bonds and $1.57 million
tax-exempt commercial paper notes issued through the California Health
Facilities Financing Authority or the California Statewide Communities
Development Authority that are supported by Kaiser Permanente's internal
liquidity. In addition, Fitch affirms the 'F1' short-term rating on the
$1.5 billion Kaiser Foundation Hospitals taxable commercial paper
Kaiser Permanente's long-term rating is 'A+', with a Stable Outlook.
The 'F1' rating is based on the sufficiency of Kaiser Permanente's
liquid resources and written procedures to fund any un-remarketed put
and/or commercial paper roll. The corporation has a total of $3.06
billion of tax exempt variable-rate bonds in a weekly or commercial
paper (CP) mode that are supported by Kaiser's internal liquidity.
However, the maturity dates on the CP has been staggered such that
Kaiser's maximum put exposure in any given week totals approximately
$1.7 billion. Kaiser has a taxable CP program which has been authorized
up to $1.5 billion, of which $100 million was outstanding at Dec. 31,
2012. Liquidity is supplemented by a $1.5 billion line of credit
provided by a consortium of banks which expires on Aug. 29, 2016. Based
on Fitch's Rating Criteria related to Self-Liquidity, Kaiser had
'eligible' cash and investments (including bank credit facilities) in
excess of the 125% threshold of its maximum put exposure for assignment
of the 'F1' rating.
Kaiser providesFitch with quarterly cash and investment reports.
For more information on Kaiser Permanente, see Fitch's rating action
commentary 'Fitch Rates $2B Kaiser Permanente 2012 Revs 'A+/F1'; Outlook
Stable' dated March 21, 2012 and available at 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'.
The ratings above were solicited by, or on behalf of, the issuer, and
therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Criteria for Assigning Short-Term Ratings Based on Internal
Liquidity', June 15, 2012.
Applicable Criteria and Related Research
Criteria for Assigning Short-Term Ratings Based on Internal Liquidity
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