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TMCNet:  Fitch Affirms Kaiser Permanente (CA) S-T Rating at 'F1'

[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 program.

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

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm rpt_id=681822

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON (News - Alert) THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.


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