Fitch Report: U.S. CCRC Investment & Debt Management Strategies

Business Wire, Oct 21, 2004

NEW YORK -- Fitch Ratings has released a special report on investment and debt management strategies of U.S. continuing care retirement communities (CCRCs) on the Fitch Ratings web site at 'www.fitchratings.com'. According to Fitch, investment returns for its rated CCRCs have declined significantly to 8.2% in 2003 from 17.4% in 1997. While at the same time, CCRCs have increasingly shifted their portfolios to riskier equity investments to stem operating losses. In addition, with the equity bubble bursting in 2000, interest rates have declined to historic lows, which have resulted in increased variable-rate debt usage.

An overview of the investment and debt portfolio of Fitch's total CCRC rated credits from 1997-2003 is provided in Fitch's latest special report. The total rated portfolio is further broken out by rating category and contract type.

The full report, 'Investment and Debt Management Strategies of Continuing Care Retirement Communities,' dated Oct. 21, 2004, is available on the Fitch Ratings web site at 'www.fitchratings.com' under 'U.S. Public Finance' and 'Special Reports'.