Fitch Upgrades Peninsula United Methodist Homes (DE) Revs to 'A-'; Outlook Stable

Fitch Ratings has upgraded the underlying rating on $47,675,000 of series 2007A issued by the Delaware Economic Development Authority on behalf of Peninsula United Methodist Homes, Inc. (PUMH) to 'A-' from 'BBB+'. The series 2007A bonds are privately placed with PNC Bank.

The Rating Outlook is Stable.

KEY RATING DRIVERS

The rating upgrade to 'A-' reflects the inclusion of PUMH into the ACTS Retirement Life Communities, Inc. (ACTS) obligated group (Fitch rated 'A-'; Outlook Stable) effective Dec. 16, 2013 and the related substitution of security.

PUMH has been owned and operated by ACTS effective May 2010. PUMH operates a total of 480 independent living units, 140 assisted living units, and 153 skilled nursing beds at three Type A continuing care retirement community (CCRC) campuses in Delaware. In fiscal year ended Dec. 31, 2012, PUMH had total operating revenues of $47.1 million and total assets of $155.8 million.

ACTS is one of the largest not-for-profit CCRC systems in the nation. Headquartered in suburban Philadelphia, ACTS operates 23 retirement communities that serve approximately 8,500 seniors in eight states. In fiscal year ended Dec. 31, 2012, the ACTS obligated group had total operating revenues of $299.9 million and total assets of $942.2 million. Fitch views the inclusion of PUMH into the ACTS obligated group to be accretive to the ACTS obligated group financial profile.

Please see 'Fitch Rates ACTS Retirement-Life Communities Obligated Group (PA) Ser 2012 Revs 'A-'; Outlook Stable', dated June 15, 2012 for more information.

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

Applicable Criteria and Related Research:

--'Revenue-Supported Rating Criteria', June 3, 2013;

--'Not-for-profit Continuing Care Retirement Communities Rating Criteria' (July 10, 2013).

Applicable Criteria and Related Research:

Revenue-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=709499

Not-for-Profit Continuing Care Retirement Communities Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=712401

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=815152

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