Fitch Rates Adventist Health System Sunbelt (FL) 2008B Revs & 2009E Rfdg Bonds 'AA-'; Outlook Stable

NEW YORK--(Business Wire)--
Fitch Ratings assigns an 'AA-' long-term rating to the following Adventist
Health System Sunbelt bonds:

--$125,000,000 Highlands County Health Facilities Authority hospital revenue
bonds, series 2008B;

--$62,520,000 Highlands County Health Facilities Authority hospital revenue
refunding bonds, series 2009E.

In addition, Fitch affirms at 'AA-' Adventist's outstanding long-term
indebtedness and at 'F1+' its short-term rating on Adventist's variable-rate
debt supported by self-liquidity.

The Rating Outlook is Stable.

The series 2008B bonds are being called for mandatory tender and are expected to
be converted to fixed rate mode. The proceeds of the series 2009E bonds will be
used to refund the Orange County Health Facilities Authority hospital revenue
bonds, series 1991-A, the Orange County Health Facilities Authority hospital
revenue bonds, series 1991-B and the Orange County Health Facilities Authority
hospital revenue bonds, series 1992. The expected sale date of the series 2008B
and 2009E bonds is Nov. 5, 2009.

The affirmation of the 'F1+' short-term rating reflects the adequacy of
Adventist's liquidity position and management's procedures to access funds in
case of an un-remarketed put of any of its outstanding variable rate debt
supported by self-liquidity. Fitch's adjusted funds available for an
un-remarketed put for Adventist is $2.2 billion, which would cover the costs of
the maximum tender exposure of $307.5 million on any given date by 7.2 times
(x), significantly exceeding Fitch's criteria for self-liquidity of 1.25x.

The 'AA-' rating and Stable Outlook are based on Adventist's consistently strong
financial performance, increasing revenue diversification, presence in several
economically vibrant and growing markets and a strong, stable and committed
management team. Adventist's strong operating performance has continued through
the first six months of 2009 with Adventist posting a 5.4% operating margin
($161 million in operating income) and a 13.3% operating EBITDA, both excellent
relative to Fitch's 2008 'AA' category medians.

The main credit weakness is Adventist's relatively higher debt burden, combined
with the need for further investment in system facility expansion and to
maintain market position. While debt ratios fall below Fitch's medians, several
debt metrics continue to show improvement as a result of the solid operating
results and prudent management of the system's investment portfolio. Liquidity
levels remain, at over 200 days cash on hand, solid for Fitch's 'AA' range, and
have been maintained despite Adventist's continued heavy reliance on internally
generated cash to fund significant portions of its facility modernization and
expansion.

For more detail on Adventist, please refer to Fitch's press release, 'Fitch
Rates Adventist Health System Sunbelt (Florida) Ser 2009D Rev Bonds 'AA-';
Outlook Stable', dated Sept. 8, 2009.

The Stable Outlook is based on Fitch's expectation that Adventist can continue
to generate stable operating performance as it strengthens its share of markets
where it has historically had a strong presence and maintains its historical
discipline in expense control and prudent management of its investment
portfolio.

Financial disclosure and reporting capabilities by Adventist's management team
are among the best in Fitch's portfolio. Other best management practices include
asset liability management, managing the investment portfolio as a business
unit, implementing a formal capital allocation model, and focusing on quality
initiatives.

Headquartered in Winter Park, FL, Adventist is the largest not-for-profit
Protestant health care organization in the nation, with 37 hospitals and 17
long-term care facilities in 10 states (Kansas, Colorado, Florida, Georgia,
Illinois Kentucky, North Carolina, Tennessee, Texas and Wisconsin). The
Adventist Obligated Group includes 34 hospitals and as of Dec. 31, 2008
accounted for 91% of Adventist's assets and 94% of revenues. The Florida
Division comprised over 50% of net operating revenue of the system in fiscal
2008 and includes the largest hospital in the U.S., Florida Hospital Orlando.
Adventist covenants to provide bondholders with unaudited quarterly statements
within 45 days of quarter end and audited annual statements within 150 days of
fiscal year end. Adventist's disclosure to EMMA occurs both annually and
quarterly, which Fitch views favorably.

Additional information is available at www.fitchratings.com.

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Fitch Ratings, New York
Eva Thein, +1-212-908-0674
Jim Mitchell, +1-813-222-1395 (Tampa)
Media Relations:
Cindy Stoller, +1-212-908-0526
cindy.stoller@fitchratings.com

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