[November 12, 2014]

Fitch Downgrades All Children's Hospital's (FL) Series 2009A Bonds to 'AA-'; Outlook Stable

Fitch Ratings has downgraded the rating to 'AA-' from 'AA' on the following bonds issued by the St. Petersburg Health Facilities Authority, FL on behalf of All Children's Hospital (ACH):

--$63.6 million, series 2009A.

ACH's previously outstanding series 2007B and 2002 bonds have been redeemed as of Oct. 31, 2014.

The bonds are removed from Rating Watch Negative, and the Rating Outlook is Stable.

SECURITY

The bonds are secured by a revenue pledge of the Johns Hopkins Health System (JHHS) obligated group (OG).

KEY RATING DRIVERS

RATING REFLECTS ADMISSION TO JHHS OG: ACH became part of Johns Hopkins Health System's obligated group (rated 'AA-'; Outlook Stable) as of Nov. 1, 2014 and the rating on the bonds reflects the closing of this transaction.

RATING SENSITIVITIES

MAINTANENCE OF CURRENT PERFORMANCE: Fitch expects JHHS to maintain performance consistent with historical levels and in line with current fiscal 2014 (June 30, 2014; audited), which generated a 3.7% operating margin and 9.6% operating EBITDA margin.

CREDIT PROFILE

JHHS became All Children's Hospital sole corporate member in 2011. ACH is a 259-bed freestanding children's hospital located in St. Petersburg, Florida. In fiscal 2014, ACH had total revenues of $424.8 million and JHHS had total revenues of approximately $5.1 billion.

For more information please see Fitch's press release 'Fitch Rates Johns Hopkins Health System's (MD) $242MM series 2013C bonds 'AA-', dated Aug. 1, 2013.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Nonprofit Hospitals and Health Systems Rating Criteria' (May 30, 2014).

For information on Build America Bonds, visit 'www.fitchratings.com/BABs'.

Applicable Criteria and Related Research:

U.S. Nonprofit Hospitals and Health Systems Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=746860

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=921695

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