The $60,900,000 Washington Health Care Facilities Authority variable rate revenue bonds, series 2002B are rated F1+ by Fitch

Fitch Ratings assigns an 'F1+' short-term rating to the $60,900,000 Washington Health Care Facilities Authority variable rate revenue bonds, series 2002B (Catholic Health Initiatives). The short-term 'F1+' rating is based on the liquidity support of a standby bond purchase agreement (SBPA) provided by JPMorgan Chase Bank, N.A. The long-term rating (currently 'AA') continues to be based on the rating assigned to the Catholic Health Initiatives revenue bonds.

The SBPA provides for the payment of the purchase price of tendered bonds during the daily and weekly rate modes, and is sized to cover the principal portion of the purchase price and 35 days of interest at the maximum interest rate of 12%, based upon a year of 365 days. The SBPA will expire on the scheduled expiration date of Aug. 20, 2010, unless such date is extended, or upon the occurrence of certain events of termination as specified in the SBPA. The short-term rating will expire upon any expiration or termination of the SBPA. The remarketing agent for the bonds is J.P. Morgan Securities Inc. The bonds are currently held as bank bonds are expected to be remarketed on or about Aug. 21, 2009.

The bonds will initially bear interest at the weekly rate, but may be converted to daily, long-term, short-term, or auction interest rate modes. While bonds bear interest in the daily or weekly rate mode, interest is payable on the first business day of each month. During the daily and weekly interest rate modes, holders have the option to tender their bonds on any business day, following the required prior notice to the tender agent, trustee and remarketing agent. The bonds are subject to mandatory tender: (1) on each interest rate conversion date, (2) on the fifth business day preceding any expiration of the SBPA without replacement, (3) the date which is seven calendar days (or if such seventh calendar day is not a business day, the next business day) after the date on which the Bond Trustee receives written notice from the Liquidity Provider of an event of default under the SBPA and directing the trustee to cause a mandatory tender of the bonds; (4) on the date of replacement of the SBPA if such replacement or withdrawal causes a reduction or withdrawal of the short-term ratings assigned to the bonds. Optional and mandatory redemption provisions also apply to the bonds pursuant to the terms of the trust agreement.

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.