CONTINUATION OF OPERATING AGREEMENT: WMH's investment grade rating assumes the extension of the operating agreement beyond the current expiration in 2023, and an ongoing relationship with SLHS.
The key rating factor in support of the 'BBB-' rating continues to be WMH's affiliation with SLHS, via an operating agreement which provides for significant benefits including strategic support, management expertise, contract leverage, and a guaranty of lease payments to the Trust equal to debt service requirements on the series 2009 bonds.
Although this guaranty is not secured under a master indenture note, it acts as a guarantee by SLHS of debt service payments through 2023 (the bonds mature in 2034).
Although this guaranty is not secured under a master indenture note, it essentially acts as a guarantee by SLHS of the debt service for the first 12 years of the bonds.
The Stable Outlook is supported by the benefit of WMH's continued affiliation with SLHS via the operating agreement, and the strength of SLHS's credit profile.