Correction - Fitch Affirms Norton Healthcare (Kentucky) Outstanding Revs at 'A-'

NEW YORK--(Business Wire)--
(This is a correction for a press release that was published
earlier today. It corrects the dollar amount for the Jefferson County
(KY) Health System revenue bonds, series 1997.)

Fitch Ratings affirms the underlying rating on approximately $702
million revenue bonds issued on behalf of Norton Healthcare, Inc.
(Norton) at 'A-'. Issuers and corresponding par amounts are listed at
the end of the press release. The Rating Outlook is Stable.

The 'A-' rating is supported by Norton's leading market position,
consistent profitability and strong liquidity relative to expenses. As
of fiscal year end 2007, Norton maintained a leading market share of
42.5% in its Louisville service area with the closest competitor,
Baptist Hospital East, having a 19.4% market share. Norton further
benefits from its dominant market share in certain service lines such
as acute pediatrics and obstetrics/women's services, where the system
has 83% and 59% market shares, respectively. Norton has earned
positive income from operations since fiscal 2005 after several years
of negative performance. While operating margins remain weak due to
sizable depreciation and interest expense, Norton's operating EBIDA
margins have exceeded 9.0% since fiscal 2004. Since 2003 Norton
divested itself of two of the four hospitals it acquired from HCA,
Inc. and has transferred 127 beds from one of the divested hospitals
(the Southwest Hospital) to a medical campus (Old Brownsboro Crossing
Development) being constructed in a much more favorable service area
located approximately 13 miles northeast of downtown Louisville.
Liquidity relative to expenses is solid with the days cash on hand
ratio at 193.5 at Dec. 31, 2007 compared to Fitch's 'A' category
median of 185.2.

Chief credit concerns include a high debt burden and a competitive
Louisville service area. Maximum annual debt service (MADS) as
percentage of fiscal 2007 revenues and debt to 2007 earnings before
interest depreciation and amortization (EBIDA) ratios are high at 4.5%
and 4.1 times (x) compared to Fitch's 'A' category medians of 3.1% and
3.1x respectively. Fitch expects leverage indicators to remain high as
Norton expects to issue a moderate amount of parity debt within the
next three years. Norton faces considerable amount of competitive
pressure with four other systems, each with more than 10% market
share, vying for volume in the service area.

The Stable Rating Outlook reflects Norton's consistent
profitability, focus on favorable service lines and geographic areas,
and moderate debt plans. Norton may issue additional debt (currently
estimated at $50 million within next three fiscal years) for the
purpose of completing the projects in Brownsboro, which Fitch believes
is manageable.

Norton is a multi-hospital health care system headquartered in
Louisville, Kentucky. It operates four hospitals with 1,260 staffed
beds (1,857 licensed beds), serves a population base of about 1.5
million, and is the region's largest health care network. Norton
covenants to provide audited annual financial statements (not to
exceed 150 days after the end fiscal year) and quarterly disclosure
(not to exceed 45 days after the end each quarter) to bondholders via
the NRMSIRs. Quarterly disclosure will consist of a balance sheet,
income statement, cash flow statement, and utilization statistics.

Outstanding revenue bonds with an underlying rating of 'A-' by
Fitch include:

--$302,690,000 Louisville/Jefferson County Metro Government Health
System Revenue Bonds, Series 2006;

--$351,763,000 Kentucky Economic Development Finance Authority
Health System Revenue Bonds, Series 2000;

--$47,915,000 Jefferson County, KY Health System Revenue Bonds,
Series 1997.

Fitch was not asked to assign an underlying rating to
approximately $31.3 million outstanding City of St. Matthews, KY
Health System Variable Rate Revenue Refunding Bonds, Series 2003.
These bonds are insured by MBIA Insurance Corp., whose insurer
financial strength is rated 'AA' by Fitch Ratings. Furthermore, the
Kentucky Economic Development Finance Authority Health System Revenue
Bonds, Series 2000B&C and the Jefferson County Health System Revenue
Bonds, Series 1997 are insured by MBIA Insurance Corp.

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
Carolyn Tain, 212-908-0259
Alex Bumazhny, 212-908-0341
or
Media Relations:
Cindy Stoller, 212-908-0526

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