Fitch Ratings has affirmed the 'F1+' rating on Scripps Health's $100 million series 2012B and C variable rate demand bonds issued by the California Health Facilities Financing Authority. The bonds are supported by self-liquidity. Fitch maintains a long-term rating of 'AA-' for Scripps Health's revenue bonds.

SECURITY

The bonds are secured by a gross receivables pledge of Scripps Health.

KEY RATING DRIVERS

LIQUID RESOURCES AVAILABLE FOR UNREMARKETED PUTS: The affirmation of the short-term 'F1+' rating is based on Scripps Health's availability of highly liquid resources to fund any unremarketed puts on its $100 million of series 2012B and C weekly variable rate demand bonds. Based on Fitch's rating criteria related to self-liquidity, Scripps Health's available cash and highly liquid investments easily exceeds Fitch's 1.25x requirement to cover the maximum tender exposure on any given date. Scripps Health has liquidation procedures in place detailing the process by which internal funds would be liquidated to meet the tender obligations.

STRONG FINANCIAL PROFILE: Fitch maintains an 'AA-' rating for Scripps Health's outstanding revenue bonds due to its strong financial profile, excellent management practices and good market position.

RATING SENSITIVITIES

AMPLE FINANCIAL CUSHION: Fitch believes there is ample financial cushion regarding the coverage of debt supported by self- liquidity, which leads to significant stability of the short- term rating.

Additional information is available at www.fitchratings.com.

Applicable Criteria and Related Research:
--'Criteria for Assigning Short-Term Ratings Based on Internal Liquidity' (June 13, 2013);
--'Nonprofit Hospitals and Health Systems Rating Criteria'(May 20, 2013).

Applicable Criteria and Related Research:
Nonprofit Hospitals and Health Systems Rating Criteria -- Effective Aug. 12, 2011 to July 23, 2012
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648836

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Fitch Ratings
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