Fitch Places Wellmont Health System's (Tennessee) 'BBB+' Revs on Watch Negative

NEW YORK--(Business Wire)--
Fitch Ratings has placed the 'BBB+' rating on the outstanding bonds issued on
behalf of Wellmont Health System (Wellmont) on Rating Watch Negative. A full
list of affected entities follows the end of the press release.

The Rating Watch Negative reflects Wellmont's failure to complete and
disseminate its fiscal 2008 audit within the time period specified in its bond
documents, as well as a significant decline in Wellmont's liquidity and a
negative operating margin through the first five months of fiscal 2009. Wellmont
is currently not compliant with its continuing disclosure agreement that
requires financial statements for the year ended June 30, 2008 to be filed with
the bond trustee within 150 days.

Management has indicated to Fitch that the delay in the audit's completion is
due to the identification of certain items that were classified to the incorrect
fiscal years. Wellmont expects to have the fiscal 2008 audit completed by June
2009.

In addition to the late audit, the Rating Watch Negative reflects a significant
decline in liquidity, with days cash on hand dropping approximately 48% since
June 2007; operating losses through the first five months of fiscal 2009; and
the departures of the CEO and CFO. Fitch will monitor the situation and will
take appropriate rating action as sufficient information develops.

Wellmont Health System is a large health care system with nine acute hospitals
(over 1,300 staffed beds) and other related entities located in northeastern TN
and southwestern VA.

Fitch has placed the following Wellmont Health System Project revenue bonds on
Rating Watch Negative

Virginia Small Business Financing Authority Hospital

--$55,000,000, series 2007A.

Health, Educational, and Housing Facilities Board of the County of Sullivan, TN

--$200,000,000, series 2006C;

--$76,595,000, series 2006A;

--$21,880,000, series 2006B;

--$67,920,000, series 2005; *

--$46,740,000, series 2003; **

*Underlying rating. The bonds are backed by a letter of credit provided by Bank
of America, whose long- and short-term debt is rated 'A+/F1+' by Fitch Ratings.

**Underlying rating. All but $5 million of the series 2003 bonds are insured by
Radian Asset Assurance Inc., which Fitch does not rate.

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
Gary Sokolow, 212-908-9186
or
Media Relations:
Cindy Stoller, 212-908-0526
Email: cindy.stoller@fitchratings.com

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