OREANDA-NEWS. Fitch Ratings has affirmed and subsequently withdrawn the 'A+' rating on the following Illinois Finance Authority bonds, issued on behalf of Little Company of Mary Hospital and Health Care Centers (LCM):

--\$38.7 million fixed rate revenue bonds series 2010;
--\$54,240,000 variable rate demand revenue bonds series 2008A; --\$54,235,000 variable rate demand revenue bonds series 2008B.

The 'A+' rating on the series 2010 bonds is being withdrawn as the debt is being refunded with private placement debt, which Fitch will not rate.

The 'A+' is an underlying rating on the series 2008A and 2008B bonds, and is being withdrawn as management has elected to not participate in the underlying rating process for these bonds going forward. The credit support on the series 2008A and series 2008B bonds is being substituted. Fitch expects to assign a rating based on the strength of the letter of credit support.

KEY RATING DRIVERS

SUSTAINED FINANCIAL PROFILE: The 'A+' rating continues to be reflected in Little Company of Mary's (LCM) sustained operating performance and robust liquidity, as evidenced by a 20% EBITDA margin and approximately 1,074 days of cash on hand (DCOH) as of the nine-month period ended March 31, 2015. In addition, clinical volumes improved materially in fiscal 2014, supported by a new bed tower and other recently renovated clinical space. Leverage remains manageable with debt to EBITDA at 2.6x in fiscal 2014 (year-ended June 30) and a 119% overfunded frozen church pension plan.

RATING SENSITIVITIES

The 'A+' rating on the series 2010 and series 2008A-B bonds is being withdrawn. As such, the rating sensitivity is not applicable.

CREDIT PROFILE

Little Company of Mary Hospital (LCMH) is located in the village of Evergreen Park on the southwest side of metropolitan Chicago. LCMH is licensed for 298 beds (operating 254) and generated \$206.8 million in total revenue through fiscal year ended June 30, 2014. Fitch adjusts this to 204.5 million, excluding investment gains from operating revenue. In addition, Fitch does not include unrealized gains/losses in its Excess or EBITDA calculations, which deviates from the audit presentation.

For additional information please see 'Fitch Upgrades Little Company of Mary Hospital (IL) Revs to 'A+'; Outlook Stable' dated Sept. 18, 2014.