Fitch Rates Indiana Health & Educational Facility Financing Authority 2006C Revs...

Fitch Rates Indiana Health & Educational Facility Financing Authority 2006C Revs 'AAA/F1+'

NEW YORK--(Business Wire)--
Fitch Ratings confirms the 'AAA' long-term rating and assigns a
'F1+' short-term rating to the Indiana Health and Educational Facility
Financing Authority's $80,500,000 health system revenue refunding
bonds, series 2006C.

The rating actions are taken in connection with the conversion of
the interest rate on the bonds from an auction rate to a weekly rate,
the provision of a standby bond purchase agreement to provide
liquidity support and the remarketing of the bonds. The long-term
'AAA' rating assigned to the bonds continues to be based on the
support of a municipal bond insurance policy provided by Financial
Security Assurance Inc., which insures scheduled payments of principal
and interest. The insurance policy will extend to the maturity date of
the bonds, Nov. 1, 2037. The short-term 'F1+' rating is based on the
liquidity support of a standby bond purchase agreement (SBPA) provided
by Wells Fargo Bank, National Association.

The SBPA provides for the payment of the purchase price of
tendered bonds during the weekly mode, 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 termination date of April 21, 2011,
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 Citigroup Global Markets Inc. The bonds are
expected to be remarketed on or about April 22, 2008.

The bonds will bear interest at the weekly rate after the
remarketing, but may be converted to a daily, long-term, bond interest
term or auction rate mode. While bonds bear interest in the weekly
rate mode, interest is payable on the first Wednesday of each month,
commencing May 7, 2008. During the weekly rate mode, 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) during bond
interest term mode, on a first day following the last day of each bond
interest term, (2) on the first day of each interest rate period, (3)
on the fifth business day preceding any expiration or termination of
the SBPA without replacement or upon termination following receipt of
notice of an event of default under the SBPA , and (4) on the date of
replacement of the SBPA. Optional and mandatory redemption provisions
also apply to the bonds pursuant to the terms of the authorizing
documents.

The proceeds of the bonds were used to finance a portion of the
costs of construction, acquisition, renovation and equipment of
certain health care and related facilities of Sisters of St. Francis
Health Services, Inc.

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.

Fitch Ratings, New York
Ronald P. McGovern, 212-908-0513
or
Media Relations:
Cindy Stoller, 212-908-0526

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