[January 15, 2013]

Fitch to Confirm 'A/F1'Rating for Boone County, AR Var Rate Hosp. Revs, Ser 2006; Outlook Stable

On the effective date of Feb. 1, 2013, Fitch Ratings will confirm the 'A/F1' rating with a Stable Outlook currently assigned to the $25,000,000 (currently outstanding $14,490,000) Boone County, Arkansas, Variable Rate Hospital Revenue Construction Bonds(North Arkansas Regional Medical Center Project), Series 2006. The rating will be based on the irrevocable direct-pay substitute letter of credit (LOC) to be provided by BOKF, NA, dba Bank of Arkansas (rated 'A/F1'; Stable Outlook by Fitch), which will secure the bonds. This rating action is in connection with the Feb. 1, 2013 mandatory tender and reoffering of the bonds and the provision of the substitute LOC, and will be effective on that date.

Pursuant to the substitute LOC, the bank is obligated to make payments of principal of and interest on the bonds upon maturity, acceleration and redemption, as well as purchase price for tendered bonds. The rating on the bonds will expire upon the earliest of: (a) April 16, 2016, the initial stated expiration date of the substitute LOC, unless such date is extended; (b) conversion of the interest rate on all the bonds to an interest rate mode other than the weekly or flexible rate modes; (c) any prior termination of the substitute LOC; and (d) defeasance of the bonds. The substitute LOC provides full and sufficient coverage of principal plus an amount equal to 35 days of interest at a maximum rate of 7% based on a year of 365 days and purchase price for tendered bonds, while in the weekly or flexible interest rate modes. During a flexible rate period (which can be from 1 - 27 days in length) interest is drawn on the LOC on the last business of each month in order to pay interest accrued for the period on the interest payment date. The Remarketing Agent for the bonds is BOSC, Inc., a division of BOK Financial Corp.

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:

--'U.S. Municipal Structured Finance Rating Criteria' (Feb. 28, 2012);

--'Rating Guidelines for Letter of Credit-Supported Bonds' (June 20, 2012).

Applicable Criteria and Related Research:

U.S. Municipal Structured Finance Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm rpt_id=672570

Rating Guidelines for Letter of Credit-Supported Bonds

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm rpt_id=681737

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.

[ Back To TMCnet.com's Homepage ]