Fitch Rates Jefferson's Ferry, NY Rev Bonds 'BBB+'; Outlook Stable
NEW YORK--(BUSINESS WIRE)--Fitch Ratings has assigned a 'BBB+' rating to the following Town of
Brookhaven Local Development Corporation revenue refunding bonds issued
on behalf of Active Retirement Community (d/b/a Jefferson's Ferry):
--$39.24 million revenue refunding bonds, series 2016.
Bond proceeds including new issue premium are being used to refund the
outstanding 2006A bonds ($38.6 million), to finance the construction,
renovation, improvements at the Jefferson's Ferry (JF) facility ($2.5
million), to fund a debt service reserve fund, and to pay costs of
issuance. Jefferson Ferry's ability to issue the series 2016 bonds is
subject to approval from the state which has not been received to date.
The Rating Outlook is Stable.
SECURITY
The bonds are secured by a pledge of gross revenues, a mortgage lien,
and a debt service reserve fund.
KEY RATING DRIVERS
HEALTHY LIQUIDITY LEVELS: JF had unrestricted cash and investments of
$33 million in fiscal 2015 which translates into 520 days cash on hand
(DCOH), 81.3% cash to debt, and a 11.5x cushion ratio which all compare
favorably to Fitch's 'BBB' category medians of 400, 60%, and 7.3x,
respectively.
SOLID OCCUPANCY: JF has demonstrated strong demand for its services due
to its favorable reputation, good location, and modest competition. This
can be evidenced by the July 2016 occupancy rates of 95.4% for
independent living units (ILUs), 100% of assisted living units (ALUs),
and 90% skilled nursing (SN) beds. Over the last three fiscal years,
occupancy rates have averaged 93% for ILUS, 89% for ALUs, and 96% for
skilled nursing. Additionally, JF currently maintains a waiting list of
approximately 65 people.
STEADY DEBT SERVICE COVERAGE: Strong demand for services and consistent
receipt of net entrance fees have led to robust cash flows. These have
translated into pro forma maximum annual debt service coverage (MADS) of
2.8x in fiscal 2015, 2.4x in fiscal 2014, and 2.3x in fiscal 2013 all of
which remain higher than the Fitch 'BBB' category median of 2.0x.
REDUCED DEBT BURDEN: The series 2016 refunding bonds are expected to
help cut JF's MADS by approximately 30% which helps significantly reduce
JF's debt burden. Pro forma MADS equates to a manageable 10.9% of fiscal
2015 revenues, which is lower than Fitch's 'BBB' category median of
12.4%. Additionally, debt to net available is 5.0x in fiscal 2015, which
also compares favorably to the category median of 5.9x.
RATING SENSITIVITIES
LIQUIDITY LEVELS: If Jefferson Ferry experiences strong operations and
robust cash flows that lead to increased liquidity levels and debt
moderation, there could be positive rating action. Conversely, should
operating performance weaken or the liquidity levels deteriorate, there
could be negative rating pressure.
CREDIT PROFILE
JF is a continuing care retirement community (CCRC) located on a 50-acre
site in South Setauket, NY. JF, which opened in May 2001, consists of
248 ILUs, 60 ALUs, and 60 bed SN facility which includes 20 beds for
memory care. JF's SN beds are certified for both Medicare and Medicaid.
JF offers two Lifecare (Type A) contracts: a 90% refundable entrance fee
contract and a traditional amortizing entrance fee contract. Both
contracts require an upfront entrance fee and ongoing monthly fees.
Refunds for contracts are given in the earlier of: 30 days following a
new resident or one-year, which could be a credit challenge if ILU
turnover accelerates and new unit sales slow down. In fiscal 2015, JF
had total operating revenues of $26.5 million.
SOLID OCCUPANCY
JF has demonstrated consistent demand for their service lines as
evidenced by strong occupancy over the last few years. As of July 2016,
occupancy rates were 95.4% in ILUS, 100% in ALUs, and 90.20% in SN beds.
Furthermore, historical occupancy has been strong as JF demonstrated the
following average occupancy rates over the three fiscal years: 93% for
ILUs, 89% for ALUs, and 96% for SN beds. These strong occupancy rates
can be attributed to its strong reputation and limited competition in
the demographically attractive Long Island market.
JF also benefits from its affiliation with its sole owner, Mather. In
addition to realizing operational synergies with its association to the
health system, the relationship also supports SN facility demand as JF
has the ability to accept outside admits directly into its SN facility.
As of July 31, 2016, approximately 19.8% of SN revenue comes from
Medicare, 9.1% from Medicaid, and approximately 7.6% from private pay.
The remaining 63.6% comes from residents whom have entered into a
Lifecare contract for one of JF's ILUs. Fitch views the affiliation with
Mather as a credit positive.
LIMITED CCRC COMPETITION
JF benefits from having limited competition for prospective residents as
there are only two other CCRCs currently located in the vast Long Island
market, both of which are outside JF's primary service area. The two
CCRCs are: Peconic Landing (rated 'BBB-'/Outlook Stable by Fitch) is
located approximately 45 miles from the facility in Greenport and
Amsterdam at Harborside is located approximately 31 miles from the
facility in Port Washington. Additionally, there is a third CCRC which
is currently in the planning stages that located about 13 miles from JF
in Commack, NY. The proposed CCRC has not starting taking entrance fee
deposits, so the effect, if any on JF's ILU demand is not yet evident.
Regardless, its location outside of JF's primary service area, the long
timeline to potential opening, and the region's favorable demographics
help mitigate concerns. Fitch believes JF's favorable competitive
profile should support ongoing demand.
ROBUST DEBT SERVICE COVERAGE AND STRONG LIQUIDITY
JF's operating performance declined slightly in fiscal 2015 but remains
sufficient for its rating level. JF had an operating ratio of 100.8% and
a net operating margin (NOM) of 3.2%, which both remain weaker than
Fitch's 'BBB' category medians of 96.1% and 8.9%, respectively. While
these ratios remain below the medians, they are typical for a Type A
CCRC with mostly refundable contracts. Concerns over JF's more modest
operating performance are mitigated by consistent cash flows, robust
debt service coverage, and strong liquidity levels.
Additionally, while having a weaker NOM, JF's adjusted NOM remains
strong at 24.8% in fiscal 2015 which is higher than the category median
of 19.3%. This strong adjusted NOM illustrates JF's consistent cash
flows from turnover units, which totaled $6.2 million in fiscal 2015,
$4.5 million in fiscal 2014, and $4.9 million in fiscal 2013. These
solid cash flows have translated into robust pro forma MADS coverage of
2.8x in fiscal 2015, 2.4x in fiscal 2014, and 2.3x in fiscal 2013, which
all remain higher than the 'BBB' category median of 2.0x.
JF's liquidity metrics remained solid in fiscal 2015 and are sufficient
for its current rating level. JF had approximately $33 million in
unrestricted cash and investments which translated into 520 DCOH, 81.3%
cash to debt, and 11.5x cushion ratio which all compare favorably to
Fitch's 'BBB' category medians of 400, 60%, and 7.3x, respectively.
DEBT PROFILE
The $39.24 million series 2016 refunding revenue bonds are expected to
be issued to refund JF's outstanding 2006 bonds, to finance various
capital costs, to fund a debt service reserve fund, and to pays costs of
issuance. The 2006 bond proceeds were used to advance refund the series
1999 bonds which were used to finance, equip, and construct the JF
facility. JF only has fixed-rate debt, which is viewed favorably. The
series 2016 bonds are expected to offer significant debt service savings
and will help reduce JF's debt burden.
The refunding is projected to reduce JF's MADS by approximately 30%,
despite the issuance of $2.5 million of new money bonds. In fiscal 2015,
pro forma MADS represented 10.9% of total revenues which is lower than
Fitch's 'BBB' category median of 12.4%. Debt to net available was 5.0x
in fiscal 2015 which also compares favorably to median of 5.9x. The $2.5
million of new money bonds are expected to be used to help fund capital
improvements of the facility over the next few years. Additionally,
annual capital expenses of approximately $3 million in the near term are
manageable and no additional debt is currently planned.
DISCLOSURE
JF covenants to provide audited financial information and operating
statistics within 150 days of fiscal year end. Additionally, JF
covenants to provide quarterly financial information and operating data.
All information will be provided via the Electronic Municipal Market
Access System which is maintained by the Municipal Securities Rulemaking
Board.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria
Not-for-Profit Continuing Care Retirement Communities Rating Criteria
(pub. 04 Aug 2015)
https://www.fitchratings.com/site/re/868824
Revenue-Supported Rating Criteria (pub. 16 Jun 2014)
https://www.fitchratings.com/site/re/750012
Additional Disclosures
Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1014372
Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1014372
Endorsement Policy
https://www.fitchratings.com/regulatory
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING
THIS LINK: HTTPS://WWW.FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.
IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE
AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT 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.
Copyright 2016 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its
subsidiaries. 33 Whitehall Street, NY, NY 10004. Telephone:
1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. Reproduction or
retransmission in whole or in part is prohibited except by permission.
All rights reserved. In issuing and maintaining its ratings and in
making other reports (including forecast information), Fitch relies on
factual information it receives from issuers and underwriters and from
other sources Fitch believes to be credible. Fitch conducts a reasonable
investigation of the factual information relied upon by it in accordance
with its ratings methodology, and obtains reasonable verification of
that information from independent sources, to the extent such sources
are available for a given security or in a given jurisdiction. The
manner of Fitch's factual investigation and the scope of the third-party
verification it obtains will vary depending on the nature of the rated
security and its issuer, the requirements and practices in the
jurisdiction in which the rated security is offered and sold and/or the
issuer is located, the availability and nature of relevant public
information, access to the management of the issuer and its advisers,
the availability of pre-existing third-party verifications such as audit
reports, agreed-upon procedures letters, appraisals, actuarial reports,
engineering reports, legal opinions and other reports provided by third
parties, the availability of independent and competent third- party
verification sources with respect to the particular security or in the
particular jurisdiction of the issuer, and a variety of other factors.
Users of Fitch's ratings and reports should understand that neither an
enhanced factual investigation nor any third-party verification can
ensure that all of the information Fitch relies on in connection with a
rating or a report will be accurate and complete. Ultimately, the issuer
and its advisers are responsible for the accuracy of the information
they provide to Fitch and to the market in offering documents and other
reports. In issuing its ratings and its reports, Fitch must rely on the
work of experts, including independent auditors with respect to
financial statements and attorneys with respect to legal and tax
matters. Further, ratings and forecasts of financial and other
information are inherently forward-looking and embody assumptions and
predictions about future events that by their nature cannot be verified
as facts. As a result, despite any verification of current facts,
ratings and forecasts can be affected by future events or conditions
that were not anticipated at the time a rating or forecast was issued or
affirmed.
The information in this report is provided "as is" without any
representation or warranty of any kind, and Fitch does not represent or
warrant that the report or any of its contents will meet any of the
requirements of a recipient of the report. A Fitch rating is an opinion
as to the creditworthiness of a security. This opinion and reports made
by Fitch are based on established criteria and methodologies that Fitch
is continuously evaluating and updating. Therefore, ratings and reports
are the collective work product of Fitch and no individual, or group of
individuals, is solely responsible for a rating or a report. The rating
does not address the risk of loss due to risks other than credit risk,
unless such risk is specifically mentioned. Fitch is not engaged in the
offer or sale of any security. All Fitch reports have shared authorship.
Individuals identified in a Fitch report were involved in, but are not
solely responsible for, the opinions stated therein. The individuals are
named for contact purposes only. A report providing a Fitch rating is
neither a prospectus nor a substitute for the information assembled,
verified and presented to investors by the issuer and its agents in
connection with the sale of the securities. Ratings may be changed or
withdrawn at any time for any reason in the sole discretion of Fitch.
Fitch does not provide investment advice of any sort. Ratings are not a
recommendation to buy, sell, or hold any security. Ratings do not
comment on the adequacy of market price, the suitability of any security
for a particular investor, or the tax-exempt nature or taxability of
payments made in respect to any security. Fitch receives fees from
issuers, insurers, guarantors, other obligors, and underwriters for
rating securities. Such fees generally vary from US$1,000 to US$750,000
(or the applicable currency equivalent) per issue. In certain cases,
Fitch will rate all or a number of issues issued by a particular issuer,
or insured or guaranteed by a particular insurer or guarantor, for a
single annual fee. Such fees are expected to vary from US$10,000 to
US$1,500,000 (or the applicable currency equivalent). The assignment,
publication, or dissemination of a rating by Fitch shall not constitute
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of the Corporations Act 2001
http://www.businesswire.com/news/home/20161104006053/en/Fitch-Rates-Jeffersons-Ferry-NY-Rev-Bonds
Brookhaven Local Development Corporation revenue refunding bonds issued
on behalf of Active Retirement Community (d/b/a Jefferson's Ferry):
--$39.24 million revenue refunding bonds, series 2016.
Bond proceeds including new issue premium are being used to refund the
outstanding 2006A bonds ($38.6 million), to finance the construction,
renovation, improvements at the Jefferson's Ferry (JF) facility ($2.5
million), to fund a debt service reserve fund, and to pay costs of
issuance. Jefferson Ferry's ability to issue the series 2016 bonds is
subject to approval from the state which has not been received to date.
The Rating Outlook is Stable.
SECURITY
The bonds are secured by a pledge of gross revenues, a mortgage lien,
and a debt service reserve fund.
KEY RATING DRIVERS
HEALTHY LIQUIDITY LEVELS: JF had unrestricted cash and investments of
$33 million in fiscal 2015 which translates into 520 days cash on hand
(DCOH), 81.3% cash to debt, and a 11.5x cushion ratio which all compare
favorably to Fitch's 'BBB' category medians of 400, 60%, and 7.3x,
respectively.
SOLID OCCUPANCY: JF has demonstrated strong demand for its services due
to its favorable reputation, good location, and modest competition. This
can be evidenced by the July 2016 occupancy rates of 95.4% for
independent living units (ILUs), 100% of assisted living units (ALUs),
and 90% skilled nursing (SN) beds. Over the last three fiscal years,
occupancy rates have averaged 93% for ILUS, 89% for ALUs, and 96% for
skilled nursing. Additionally, JF currently maintains a waiting list of
approximately 65 people.
STEADY DEBT SERVICE COVERAGE: Strong demand for services and consistent
receipt of net entrance fees have led to robust cash flows. These have
translated into pro forma maximum annual debt service coverage (MADS) of
2.8x in fiscal 2015, 2.4x in fiscal 2014, and 2.3x in fiscal 2013 all of
which remain higher than the Fitch 'BBB' category median of 2.0x.
REDUCED DEBT BURDEN: The series 2016 refunding bonds are expected to
help cut JF's MADS by approximately 30% which helps significantly reduce
JF's debt burden. Pro forma MADS equates to a manageable 10.9% of fiscal
2015 revenues, which is lower than Fitch's 'BBB' category median of
12.4%. Additionally, debt to net available is 5.0x in fiscal 2015, which
also compares favorably to the category median of 5.9x.
RATING SENSITIVITIES
LIQUIDITY LEVELS: If Jefferson Ferry experiences strong operations and
robust cash flows that lead to increased liquidity levels and debt
moderation, there could be positive rating action. Conversely, should
operating performance weaken or the liquidity levels deteriorate, there
could be negative rating pressure.
CREDIT PROFILE
JF is a continuing care retirement community (CCRC) located on a 50-acre
site in South Setauket, NY. JF, which opened in May 2001, consists of
248 ILUs, 60 ALUs, and 60 bed SN facility which includes 20 beds for
memory care. JF's SN beds are certified for both Medicare and Medicaid.
JF offers two Lifecare (Type A) contracts: a 90% refundable entrance fee
contract and a traditional amortizing entrance fee contract. Both
contracts require an upfront entrance fee and ongoing monthly fees.
Refunds for contracts are given in the earlier of: 30 days following a
new resident or one-year, which could be a credit challenge if ILU
turnover accelerates and new unit sales slow down. In fiscal 2015, JF
had total operating revenues of $26.5 million.
SOLID OCCUPANCY
JF has demonstrated consistent demand for their service lines as
evidenced by strong occupancy over the last few years. As of July 2016,
occupancy rates were 95.4% in ILUS, 100% in ALUs, and 90.20% in SN beds.
Furthermore, historical occupancy has been strong as JF demonstrated the
following average occupancy rates over the three fiscal years: 93% for
ILUs, 89% for ALUs, and 96% for SN beds. These strong occupancy rates
can be attributed to its strong reputation and limited competition in
the demographically attractive Long Island market.
JF also benefits from its affiliation with its sole owner, Mather. In
addition to realizing operational synergies with its association to the
health system, the relationship also supports SN facility demand as JF
has the ability to accept outside admits directly into its SN facility.
As of July 31, 2016, approximately 19.8% of SN revenue comes from
Medicare, 9.1% from Medicaid, and approximately 7.6% from private pay.
The remaining 63.6% comes from residents whom have entered into a
Lifecare contract for one of JF's ILUs. Fitch views the affiliation with
Mather as a credit positive.
LIMITED CCRC COMPETITION
JF benefits from having limited competition for prospective residents as
there are only two other CCRCs currently located in the vast Long Island
market, both of which are outside JF's primary service area. The two
CCRCs are: Peconic Landing (rated 'BBB-'/Outlook Stable by Fitch) is
located approximately 45 miles from the facility in Greenport and
Amsterdam at Harborside is located approximately 31 miles from the
facility in Port Washington. Additionally, there is a third CCRC which
is currently in the planning stages that located about 13 miles from JF
in Commack, NY. The proposed CCRC has not starting taking entrance fee
deposits, so the effect, if any on JF's ILU demand is not yet evident.
Regardless, its location outside of JF's primary service area, the long
timeline to potential opening, and the region's favorable demographics
help mitigate concerns. Fitch believes JF's favorable competitive
profile should support ongoing demand.
ROBUST DEBT SERVICE COVERAGE AND STRONG LIQUIDITY
JF's operating performance declined slightly in fiscal 2015 but remains
sufficient for its rating level. JF had an operating ratio of 100.8% and
a net operating margin (NOM) of 3.2%, which both remain weaker than
Fitch's 'BBB' category medians of 96.1% and 8.9%, respectively. While
these ratios remain below the medians, they are typical for a Type A
CCRC with mostly refundable contracts. Concerns over JF's more modest
operating performance are mitigated by consistent cash flows, robust
debt service coverage, and strong liquidity levels.
Additionally, while having a weaker NOM, JF's adjusted NOM remains
strong at 24.8% in fiscal 2015 which is higher than the category median
of 19.3%. This strong adjusted NOM illustrates JF's consistent cash
flows from turnover units, which totaled $6.2 million in fiscal 2015,
$4.5 million in fiscal 2014, and $4.9 million in fiscal 2013. These
solid cash flows have translated into robust pro forma MADS coverage of
2.8x in fiscal 2015, 2.4x in fiscal 2014, and 2.3x in fiscal 2013, which
all remain higher than the 'BBB' category median of 2.0x.
JF's liquidity metrics remained solid in fiscal 2015 and are sufficient
for its current rating level. JF had approximately $33 million in
unrestricted cash and investments which translated into 520 DCOH, 81.3%
cash to debt, and 11.5x cushion ratio which all compare favorably to
Fitch's 'BBB' category medians of 400, 60%, and 7.3x, respectively.
DEBT PROFILE
The $39.24 million series 2016 refunding revenue bonds are expected to
be issued to refund JF's outstanding 2006 bonds, to finance various
capital costs, to fund a debt service reserve fund, and to pays costs of
issuance. The 2006 bond proceeds were used to advance refund the series
1999 bonds which were used to finance, equip, and construct the JF
facility. JF only has fixed-rate debt, which is viewed favorably. The
series 2016 bonds are expected to offer significant debt service savings
and will help reduce JF's debt burden.
The refunding is projected to reduce JF's MADS by approximately 30%,
despite the issuance of $2.5 million of new money bonds. In fiscal 2015,
pro forma MADS represented 10.9% of total revenues which is lower than
Fitch's 'BBB' category median of 12.4%. Debt to net available was 5.0x
in fiscal 2015 which also compares favorably to median of 5.9x. The $2.5
million of new money bonds are expected to be used to help fund capital
improvements of the facility over the next few years. Additionally,
annual capital expenses of approximately $3 million in the near term are
manageable and no additional debt is currently planned.
DISCLOSURE
JF covenants to provide audited financial information and operating
statistics within 150 days of fiscal year end. Additionally, JF
covenants to provide quarterly financial information and operating data.
All information will be provided via the Electronic Municipal Market
Access System which is maintained by the Municipal Securities Rulemaking
Board.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria
Not-for-Profit Continuing Care Retirement Communities Rating Criteria
(pub. 04 Aug 2015)
https://www.fitchratings.com/site/re/868824
Revenue-Supported Rating Criteria (pub. 16 Jun 2014)
https://www.fitchratings.com/site/re/750012
Additional Disclosures
Dodd-Frank Rating Information Disclosure Form
https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1014372
Solicitation Status
https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1014372
Endorsement Policy
https://www.fitchratings.com/regulatory
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING
THIS LINK: HTTPS://WWW.FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.
IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE
AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT 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.
Copyright 2016 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its
subsidiaries. 33 Whitehall Street, NY, NY 10004. Telephone:
1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. Reproduction or
retransmission in whole or in part is prohibited except by permission.
All rights reserved. In issuing and maintaining its ratings and in
making other reports (including forecast information), Fitch relies on
factual information it receives from issuers and underwriters and from
other sources Fitch believes to be credible. Fitch conducts a reasonable
investigation of the factual information relied upon by it in accordance
with its ratings methodology, and obtains reasonable verification of
that information from independent sources, to the extent such sources
are available for a given security or in a given jurisdiction. The
manner of Fitch's factual investigation and the scope of the third-party
verification it obtains will vary depending on the nature of the rated
security and its issuer, the requirements and practices in the
jurisdiction in which the rated security is offered and sold and/or the
issuer is located, the availability and nature of relevant public
information, access to the management of the issuer and its advisers,
the availability of pre-existing third-party verifications such as audit
reports, agreed-upon procedures letters, appraisals, actuarial reports,
engineering reports, legal opinions and other reports provided by third
parties, the availability of independent and competent third- party
verification sources with respect to the particular security or in the
particular jurisdiction of the issuer, and a variety of other factors.
Users of Fitch's ratings and reports should understand that neither an
enhanced factual investigation nor any third-party verification can
ensure that all of the information Fitch relies on in connection with a
rating or a report will be accurate and complete. Ultimately, the issuer
and its advisers are responsible for the accuracy of the information
they provide to Fitch and to the market in offering documents and other
reports. In issuing its ratings and its reports, Fitch must rely on the
work of experts, including independent auditors with respect to
financial statements and attorneys with respect to legal and tax
matters. Further, ratings and forecasts of financial and other
information are inherently forward-looking and embody assumptions and
predictions about future events that by their nature cannot be verified
as facts. As a result, despite any verification of current facts,
ratings and forecasts can be affected by future events or conditions
that were not anticipated at the time a rating or forecast was issued or
affirmed.
The information in this report is provided "as is" without any
representation or warranty of any kind, and Fitch does not represent or
warrant that the report or any of its contents will meet any of the
requirements of a recipient of the report. A Fitch rating is an opinion
as to the creditworthiness of a security. This opinion and reports made
by Fitch are based on established criteria and methodologies that Fitch
is continuously evaluating and updating. Therefore, ratings and reports
are the collective work product of Fitch and no individual, or group of
individuals, is solely responsible for a rating or a report. The rating
does not address the risk of loss due to risks other than credit risk,
unless such risk is specifically mentioned. Fitch is not engaged in the
offer or sale of any security. All Fitch reports have shared authorship.
Individuals identified in a Fitch report were involved in, but are not
solely responsible for, the opinions stated therein. The individuals are
named for contact purposes only. A report providing a Fitch rating is
neither a prospectus nor a substitute for the information assembled,
verified and presented to investors by the issuer and its agents in
connection with the sale of the securities. Ratings may be changed or
withdrawn at any time for any reason in the sole discretion of Fitch.
Fitch does not provide investment advice of any sort. Ratings are not a
recommendation to buy, sell, or hold any security. Ratings do not
comment on the adequacy of market price, the suitability of any security
for a particular investor, or the tax-exempt nature or taxability of
payments made in respect to any security. Fitch receives fees from
issuers, insurers, guarantors, other obligors, and underwriters for
rating securities. Such fees generally vary from US$1,000 to US$750,000
(or the applicable currency equivalent) per issue. In certain cases,
Fitch will rate all or a number of issues issued by a particular issuer,
or insured or guaranteed by a particular insurer or guarantor, for a
single annual fee. Such fees are expected to vary from US$10,000 to
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http://www.businesswire.com/news/home/20161104006053/en/Fitch-Rates-Jeffersons-Ferry-NY-Rev-Bonds
