CHICAGO--(BUSINESS WIRE)-- <\/p>\n
Fitch Ratings has placed the 'A-' rating on the following outstanding bonds of University of Medicine and Dentistry of New Jersey (UMDNJ) on Rating Watch Evolving: <\/p>\n
--$258 million New Jersey Educational Facilities Authority revenue refunding bonds, UMDNJ issue, series 2009 B; and <\/p>\n
--$193 million UMDNJ bonds, 2002 series A. <\/p>\n
SECURITY <\/p>\n
The bonds are a general obligation (GO) of UMDNJ, payable from all legally available, unencumbered funds and balances. The bonds are also secured by state appropriations on deposit with a lockbox bank, pursuant to a lockbox agreement, acknowledged by the state of New Jersey (GO bonds rated 'AA-' with a Stable Outlook by Fitch). <\/p>\n
KEY RATING DRIVER <\/p>\n
UMDNJ Dissolution Effective July 1, 2013: The Rating Watch Evolving anticipates the July 1, 2013 dissolution of UMDNJ pursuant to legislation signed by New Jersey's Governor in August 2012. The legislation integrates UMDNJ's programs and facilities into Rutgers University (rated 'AA-'\/Stable Outlook); Rowan University (NR) and a free-standing hospital entity (NR). Fitch's rating for Rutgers incorporates their portion of the UMDNJ integration. <\/p>\n
RATING SENSITIVITY <\/p>\n
The outstanding debt of UMDNJ is expected to be defeased in late June 2013, with each of the three receiver entities issuing refinancing\/defeasance bonds as they assume their proportionate shares of UMDNJ's debt. Fitch expects to withdraw its ratings on the above UMDNJ bonds effective July 1, 2013. <\/p>\n
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Fitch Places University of Medicine and Dentistry of New Jersey on Rating Watch Evolving<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" CHICAGO--(BUSINESS WIRE)-- Fitch Ratings has placed the 'A-' rating on the following outstanding bonds of University of Medicine and Dentistry of New Jersey (UMDNJ) on Rating Watch Evolving: --$258 million New Jersey Educational Facilities Authority revenue refunding bonds, UMDNJ issue, series 2009 B; and --$193 million UMDNJ bonds, 2002 series A. Continue reading