OREANDA-NEWS. December 15, 2015. Fitch Ratings has assigned the Assistance Publique - Hopitaux de Paris' (AP-HP; AA/Stable/F1+) EUR300m French commercial paper (CP) programme an expected Short-term local currency rating of 'F1+(EXP)'.

The final ratings are contingent upon the receipt of final documents conforming to information already received.

KEY RATING DRIVERS
The expected rating on the CP programme, which has a maturity of one year, reflects AP-HP's predictable cash flow as the main treasury inflows are set by law. Fitch considers AP-HP's liquidity arrangements are sufficient for meeting debt service requirements, covering debt service by a stable 1.3x expected at end-2015. Due to two rounds of consultation being set up for credit lines, Fitch believes that AP-HP is less exposed to the risk of non-renewal.

AP-HP plans to achieve maximum issues of EUR150m. The CP programme will be backed by sufficient bank liquidity. Fitch views positively AP-HP's high comfortable liquidity coverage.

AP-HP is one of the main French hospitals allow by law to issue CP. Like all public health establishments (PHEs; etablissements publics de sante), AP-HP's liquidity is underpinned by tight control from the state. The French state (AA/Stable/F1+) established a special committee to scrutinise the liquidity of any hospital thought to face liquidity problems. The hospitals concerned will have to submit three months' cash flow projections. AP-HP has not been subjected to control by this special committee in 2015 as it does not show any liquidity problems.

Fitch rates AP-HP on a top-down basis under its public-sector entity rating criteria, due to AP-HP's status as a PHE, its tight control by the French state and its strategic importance to the government. As a result, AP-HP's ratings are credit-linked and equalised with those of France.

RATING SENSITIVITIES
The rating of the CP programme is aligned with the Short-term Issuer Default Ratings of AP-HP. Any modification of AP-HP's issuer ratings would be mirrored by the CP programme's rating.

For more information on the key sensitivities related to AP-HP's ratings, see "Fitch Affirms AP-HP at 'AA', Outlook Stable" dated 17 July 2015 at www.fitchratings.com.