Fitch Rates Catholic Health Initiatives Series 2004B-4 Bonds 'AA/F1+'; Stable Outlook

Business Wire, Nov 10, 2006

NEW YORK -- Fitch assigns a rating of 'AA/F1 ' to the $47.3 million outstanding Colorado Health Facilities Authority variable-rate revenue bonds (Catholic Health Initiatives), series 2004B-4. Fitch also affirms its 'AA' rating to the approximately $2.8 billion outstanding bonds issued on behalf of Catholic Health Initiatives (CHI). The Rating Outlook is Stable.

The 'AA' rating is supported by CHI's continued solid profitability, healthy liquidity, strong revenue and profit diversity, and superior management practices.

Effective Nov. 13, 2006, Catholic Health Initiatives has chosen to terminate the Wells Fargo Bank liquidity facility on the 2004B-4 bonds. Including the series 2004B-4 bonds, CHI will have $858.4 million in putable debt outstanding, $210.7 million of which is supported by CHI's internal liquidity.

The 'F1 ' rating reflects CHI's good liquidity position and sound internal procedures that ensure timely access and transfer of funds in the event of a failed remarketing. Unrestricted cash at June 30, 2006 was approximately $3.5 billion, providing close to 4.1 times (x) coverage on putable outstanding debt.

For more information, see Fitch Research on 'Catholic Health Initiatives, Colorado' dated Oct. 24, 2006; available on the Fitch Ratings web site at www.fitchratings.com.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.